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Recruitment Agency Business Plan: How to Write One

Launching a recruitment agency demands a solid foundation, and crafting a detailed business plan is the cornerstone. Get started on your recruitment agency business plan with our guide. We will walk you through all the details.

The United States, Japan, and the United Kingdom dominated the recruitment and staffing industry in 2022, generating 55% of its revenue. Global revenue for the staffing industry jumped 4% to $648 billion, according to a report from Staffing Industry Analysts . The current job market, characterized by rapid technological advancements and shifting workforce demographics, is creating a market for flexible staffing solutions.

To cut costs and improve the efficiency of human resources, businesses are turning to staffing and recruitment agencies to secure talent. The rise of the gig economy and the preference for contract or temporary positions among workers seeking greater work-life balance is helping fuel the industry’s growth. Nearly 23% of working Americans also have a side hustle, according to a recent study by Pymnts .

Your Business Plan’s Key Elements

Whether you are a seasoned professional in the staffing world or a newcomer to the field, you need to start with a recruitment agency business plan. Creating a business plan requires gathering a significant amount of information. Start by researching the staffing industry, including market size, growth trends, and regulatory considerations. Network with industry professionals, attend relevant conferences, and utilize online resources to gain knowledge. Financial projections should be based on realistic market assumptions and comparable business models.

Keep in mind you will need a business plan at various stages of your business journey. Initially, it will guide your startup phase, helping you to secure funding and establish your business structure. As your agency grows, revisiting your plan can help you to scale your operations and enter new markets.

A comprehensive startup business plan for a recruitment agency should include:

• Executive summary: Start with a clear and concise overview of your business — your elevator pitch. Highlight your business goals, mission statement, and the services you plan to offer.
• Market analysis: Conduct thorough research on the staffing industry, focusing on your niche. Identify your target market, analyze your competitors, and outline the trends and challenges in the industry to understand your unique selling proposition.
• Services: Detail the types of staffing services you plan to provide. Whether it is temporary staffing, permanent placement, or executive search, be clear about your offerings, the verticals you will serve, and how they meet the needs of your target market.
• Marketing plan: Outline how you will attract clients and candidates with your marketing plan and sales strategy. Identify the channels you can use to build your brand and reach your audience.
• Operations: Describe the day-to-day operations of your agency, including the recruitment process, the technology, the tools you need, and how you plan to maintain quality and compliance.
• Financial plan: Make detailed financial projections, such as startup costs, revenue forecasts, and a break-even analysis to understand the financial viability of your business.
• Management: Highlight your team’s expertise and the organizational structure of your agency. If you start solo, outline your experience and any external support you can leverage.

Partnering With AtWork: A Shorter Path to Your Goal

If you are considering opening a recruitment agency, partnering with AtWork to start a staffing franchise can significantly streamline the startup process. By joining forces with a proven brand, you can cut down on startup costs and bypass many of the hurdles of starting from scratch. AtWork’s recruitment agency business plan also allows you to take advantage of the Work Opportunity Tax Credit (WOTC) to lower your operational costs.

AtWork provides comprehensive knowledge, training, and tools essential for launching your staffing business. As a franchise owner, you get in-depth training on running a successful staffing agency, including sales, operations, and compliance. AtWork has state-of-the-art technology and operational tools to simplify day-to-day management, and marketing campaigns to effectively promote your agency and attract clients and candidates. Its support staff also handles all your payroll, allowing you to concentrate on scaling the business.

Learn More About AtWork

Get started to learn more about partnering with AtWork to launch a business in the staffing industry.

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How to write a business plan for recruitment in 2024 (template included)

• Published on June 3, 2020
• Updated on February 12, 2024

Writing a business plan in recruitment has always played a crucial part in the interview process for a number of recruitment agencies around the world.

A comprehensive business plan can demonstrate a recruiter’s commitment, knowledge and commercial acumen. During economic uncertainties in 2023, these qualities are more important than ever.

Arriving at an interview armed with a comprehensive business plan before you’re even asked will no doubt set yourself apart from other recruiters.

During economic uncertainties, managers will need to present a business case to leadership for budget approval in order to make a hire. Your business plan will be an important element of this business case. An impressive business plan could be the difference between landing an offer today, or falling into a pipeline of other candidates.

In this article, we share a step-by-step guide outlining how to create a comprehensive business plan. We walk through the key components and include examples.

At the end of the article, you can download a free recruitment business plan template which is tailored towards the key components mentioned in this article.

A business plan should be packed full of relevant information but should be compressed and to the point. Avoid verbiage, stay specific and keep to 4 – 6 pages.

Introduction

Start with a title. Include your name and the company you’re writing the business plan for. A little personalisation will go a long way.

Underneath your title, outline the objective of your business plan and again personalise it towards the agency you’re interviewing with. While you have the hiring manager’s attention, this paragraph is an opportunity for you to demonstrate how comprehensive your business plan is. The aim is to capture the hiring manager’s interest so they continue to read each component:

“The objective of this business plan is to outline the value I can add to employer’s name.

In this business plan, I have highlighted my specialism, hiring activity in my market, my candidate and client strategies, my methodology, how I plan to recruit through economic uncertainties in 2023, my competition and my personal revenue projections over 12 months.”

You can use this paragraph as a way to introduce your business plan verbally if you’ve called up a hiring manager. You can also use this extract in a cold email.

Your specialisation

This is a crucial positioning statement for your value-add. It sets out precisely where your network and experience lies and what you intend to bring to the table in your new role.

Your specialisation can be described clearly by outlining what roles you will specialise in, what industries you will target, what level of seniority you will focus on and what geographies you will cover.

For ease of reading, you can use each component as a title and use bullet points to expand upon your answers.

Taking a Technology recruiter as an example:

What roles I will specialise in:

• Product Management permanent roles
• UX/UI Design permanent roles

What industries I will target:

• Series A – C funded technology startups (high investment, high growth and high volume of roles)

What level of seniority I will focus on:

• Mid to senior (120 – 180k salary range for Product Managers, 140 – 200k salary range for Designers)

What geographies I will cover:

• Based in Singapore, the local market will be my core market
• Secondary markets include Jakarta, Bangkok and Kuala Lumpur due to less competition from recruiters and high volume of roles

Hiring activity trends

The hiring activity trends section provides an opportunity for you to demonstrate and portray your knowledge of the market.

The 3 important components of this section are: hiring activity over the past 3 years, hiring activity for next year and how you predict hiring activity to shift beyond that.

Utilise your own knowledge of the market but back it up with research gained from reputable sources related to your market e.g. Tech in Asia, Tech Crunch, Channel News Asia, The Straits Times or The Financial Times.

You’ll want to cover how hiring activity has increased or decreased, what the drivers of growth are in your industry and what the threats and challenges are within your sector.

Candidate strategies

Moving on from market trends, this section indicates how you will acquire candidates for your desk. It offers an opportunity for you to demonstrate the experience you’ve learnt in candidate management from your previous firm, but also an opportunity for the employer to ensure that your approach aligns with theirs.

3 key components of this section include: how you will generate candidate leads, what challenges you expect to face and how you will overcome these challenges.

Taking a Front Office Banking & Financial Services recruiter as an example:

How do I plan to generate candidate leads:

• Direct headhunting using a LinkedIn Recruiter account, this costs approximately $X amount, the key benefits being access to a high volume of InMails and enhanced search capability. This has been the sourcing tool for 60% of my previous placements

Challenges I expect to face:

• In light of economic uncertainties in 2023, highly sought-after candidates may be risk-averse and may not see this as a good time to move jobs

How I will overcome these challenges:

• I will develop relationships with these candidates for the future but I will adjust my sourcing strategy accordingly by increasing volume of direct approaches

Client strategies

A similar section to candidate strategies but geared towards clients. Arguably more important than candidate strategies during a recession as the market could be job-short – even in the good times, strong business development capabilities in recruiters are harder to find.

This section includes 6 key components including how you plan to onboard new clients, how you plan to sustain relationships with clients for repeat business, what industries your clients are in, the challenges you expect to face and how you will overcome these challenges.

Take these bullet points as a basic example:

How I plan to onboard new clients:

• During a recession, I plan to cultivate relationships by helping and consulting clients on non-recruitment related issues, such as advising clients on the current state of the market
• I plan to generate leads by making 25 cold calls per day during the ramp-up period, to again offer support and advice where needed, and to leverage any open roles
• A soft approach of connecting with hiring managers, HR contact and C-Level candidates on LinkedIn, to establish working relationships and eventually convert into clients

How I plan to sustain relationships with current clients and win repeat roles:

• The most important way to sustain relationships is by offering a service that is superior to competitors. That is by being transparent, sticking to deadlines and delivering results
• Regularly catch up with clients on a monthly basis to see how they’re doing and see if you can generate new roles
• Keep yourself updated on company news and congratulate clients on milestones e.g. if they generate a Series C round of funding

What industries I will target clients in:

• Series A – B funded technology startups
• During a recession there is less of an appetite to use agencies due to an unprecedented volume of great candidates available in the market
• Offer free support to companies currently not using agencies, provide an impressive service and convert into paying client post-recovery

The 6th component is “examples of target clients” and this is where you can really demonstrate tangible market knowledge. Use company names, find the potential contact in each company and add your comments, such as the volume of roles you expect from that client. 5 examples should be enough to peak your hiring manager’s interest.

You can use a table to display this information with ease:

It goes without saying that you should never be tempted to use information that is proprietary to your previous employer. This information can be openly found with some basic LinkedIn research.

My methodology

Are you a recruiter that is focussed on crunching numbers? Are you a recruiter who is focussed on cultivating long-term relationships? In this section, you can include a few quick bullet points to explain how you approach recruitment. This information gives your hiring manager an indication about whether you hold similar values and whether you have similar working styles.

How you can adapt to recruiting during a possible economic downturn

This section is a new one in response to market conditions in 2023 but can demonstrate how you are prepared to deal with current and upcoming challenges.

You can use this section as the title and include bullet points to outline how you will adapt to these market conditions.

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My key competitors

Which recruiters and agencies offer the greatest competition? Demonstrating your knowledge in this area highlights that you are commercially aware outside of your core market.

Include about 5 different competitors who are directly competing in your patch. You can use the table below to display this information:

Personal revenue and target projections

In many business plans, financial projections are of utmost importance and can demonstrate your commercial acumen. If you’ve ever watched Dragon’s Den, you’ll know what happens when you don’t know your numbers!

Project your personal revenue for 4 quarters. You can start your calculations by predicting the average annual salary of a candidate in your patch. You can project your average percentage fee agreed with clients and from there you can calculate your average fee. Once you have this, you can predict the amount of placements you’ll be making per month.

Make sure your revenue projections are realistic and achievable. Avoid the temptation to predict vastly optimistic revenues, especially during a possible recession. You must allow time to ramp-up and there must be a logical relationship between your historical and predicted revenues.

The plan only includes project revenue. Your historical revenue should be on your CV.

Take the below as an example:

My predicted average annual salary of candidates:

My predicted average percentage fee agreed with the client:, my predicted average fee:, my predicted average placements per month, my projected revenue over 12 months.

Underneath, you can also include the KPIs you will set yourself to guide you in achieving these numbers. For example, you can set yourself a guideline for how many CVs you need to send, how many candidate meetings you need to arrange, how many client meetings you need to arrange and so on.

The template

We’ve constructed a free template built around the components mentioned above, so you can create your own for when you reach out to hiring managers.

To download this template, please add your email below and you’ll be redirected to the template.

By downloading our busines plan, you agree to our  Privacy Policy and Notification Settings .

This step-by-step guide should give your hiring manager a clear idea of your plan. If executed successfully, you’ve already demonstrated your commitment, knowledge and commercial acumen before even attending an interview.

The way you’ve structured your plan will give your hiring manager a very clear indication of your methodology and whether you’d fit their structure. Keep in mind that if your methodology is focused on high volume recruitment, it’s not going to work well with an executive recruitment agency.

As a next step, learn this plan inside and out. Be prepared to pitch your plan to your hiring manager and answer detailed questions surrounding each component.

Leave your interviewer with no room for concern and secure that role! Lastly, if you enjoyed the article, please consider subscribing or following us on LinkedIn to have new articles for recruiters like this delivered directly to your inbox.

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As Founder of Charterhouse Partnership, I led the opening of 5 international offices, hiring & training hundreds of recruiters. Please subscribe to our weekly newsletter where I share my insights on the recruitment industry.

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How to write a business plan for a recruitment agency?

Writing a business plan for a recruitment agency can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing a recruitment agency business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for a recruitment agency?

What information is needed to create a business plan for a recruitment agency.

• What goes in the financial forecast for a recruitment agency?
• What goes in the written part of a recruitment agency business plan?
• What tool can I use to write my recruitment agency business plan?

Understanding the document's scope and goals will help you easily grasp its structure and content. Before diving into the specifics of the plan, let's take a moment to explore the key reasons why having a recruitment agency business plan is so crucial.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your recruitment agency is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your recruitment agency, you'll have to:

• Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
• Determine the pace at which the business needs to progress to meet its objectives as scheduled,
• Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To get visibility on future cash flows

If your small recruitment agency runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your recruitment agency's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your recruitment agency business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your recruitment agency's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your recruitment agency.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your recruitment agency and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your recruitment agency's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your recruitment agency, let's explore what information is required to create a compelling plan.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Writing a recruitment agency business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for a recruitment agency

Before you begin writing your business plan for a recruitment agency, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your recruitment agency.

You might discover that job seekers in your area may be more interested in certain industries than others. Additionally, research may reveal that job seekers may be more likely to respond to certain types of recruitment tactics than others.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your recruitment agency.

Developing the marketing plan for a recruitment agency

Before delving into your recruitment agency business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a recruitment agency

As you embark on starting or expanding your recruitment agency, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

Staffing costs for a recruitment agency might include salaries for recruiters, administrative staff, and sales representatives. Equipment costs might include computers, software, telephone systems, and office furniture.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your recruitment agency's financial forecast?

The financial forecast of your recruitment agency's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a recruitment agency are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a recruitment agency shows how much revenue and profits your business is expected to generate in the future.

Ideally, your recruitment agency's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established recruitment agency. And similarly, an established company should showcase a higher level of profitability than a new venture.

The projected balance sheet of your recruitment agency

The balance sheet for a recruitment agency is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your recruitment agency's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your recruitment agency's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The projected cash flow statement

A cash flow forecast for a recruitment agency shows how much cash the business is projected to generate or consume.

The cash flow statement is divided into 3 main areas:

• The operating cash flow shows how much cash is generated or consumed by the operations (running the business)
• The investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.)
• The financing cash flow shows how much cash is raised or distributed to investors and lenders

Looking at the cash flow forecast helps you to ensure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

It is also a best practice to include a monthly cash flow statement in the appendices of your recruitment agency business plan so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a recruitment agency.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

This table helps size the investment required to set up the recruitment agency, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your recruitment agency business plan, let's have a look at the written part of the plan.

The written part of a recruitment agency business plan

The written part of a recruitment agency business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

Let's go through the content of each section in more detail!

1. The executive summary

In your recruitment agency's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.

When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.

Following that, provide an overview of the addressable market for your recruitment agency, current trends, and potential growth opportunities.

Next, include a summary of key financial figures like projected revenues, profits, and cash flows.

Finally, in the "ask" section, detail any funding requirements you may have.

2. The presentation of the company

As you build your recruitment agency business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your recruitment agency, you could highlight the potential for growth, as the area may boast a highly educated population and a booming economy. You could emphasize the easy access to major transportation routes, which could make it easier for potential candidates to reach the agency. Additionally, you might point out the presence of other prominent businesses in the area, which could indicate a strong job market. Finally, you could showcase the area's potential for expansion, as it may offer plenty of land and a dynamic business environment.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers. 

For example, your recruitment agency may offer job search consulting services to help customers create a successful job search plan that will maximize their chances of success. It might also offer resume and cover letter writing services to ensure customers' documents are both up-to-date and tailored to the relevant job. Finally, it may also provide interview coaching services, to help customers prepare for, and excel in, job interviews. These services are important to help customers succeed in their job search and secure the right job for them.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When you present your market analysis in your recruitment agency business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your recruitment agency, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your recruitment agency aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include recent college graduates who are seeking their first job after graduation. This segment is likely to be highly motivated and eager to begin their career. Additionally, this segment is likely to be very open to the services that a recruitment agency can provide, such as helping to craft resumes and providing job search assistance.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your recruitment agency.

5. The strategy section

When crafting the strategy section of your business plan for your recruitment agency, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your recruitment agency could face the risk of a data breach. An incident such as this could lead to the loss of confidential information held by the agency, which could damage the agency's reputation and lead to financial loss. Your recruitment agency might also face the risk of a legal dispute from a client or a candidate. This could lead to costly legal fees and could have a negative effect on the agency's reputation.

6. The operations section

The operations of your recruitment agency must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your recruitment agency - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as databases of potential candidates for specific job roles and an extensive network of contacts. These could be considered intellectual property. Additionally, the recruitment agency might have brand recognition and a reputation for placing high-calibre candidates, which could be intangible assets.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will present the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of what goes in your recruitment agency business plan, let's look at the solutions you can use to draft yours.

What tool should I use to write my recruitment agency's business plan?

There are two main ways of creating your recruitment agency business plan:

• Using specialized business planning software,
• Hiring a business plan writer.

Using an online business plan software for your recruitment agency's business plan

The modern and most efficient way to write a recruitment agency business plan is to use business plan software .

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your recruitment agency's business plan

Outsourcing your recruitment agency business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your recruitment agency business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your recruitment agency's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a recruitment agency business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my recruitment agency business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a recruitment agency business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your recruitment agency and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your recruitment agency business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• What is the price of a business plan?
• How to present your sales and marketing strategy in your business plan?
• Internal business plan
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a recruitment agency? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Recruitment Business Plan Template & Guidebook

For any business looking to take their recruitment efforts to the next level, having an effective plan of action is a must. The #1 Recruitment Business Plan Template & Guidebook offers an easy-to-follow framework for creating a step-by-step recruitment strategy that will get results. This comprehensive guide includes everything you need to know to develop an actionable plan backed by best practices and insightful tips from industry experts. Let's explore what this powerful tool can do to help you increase your hiring success.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Recruitment Business [11 Steps]
• 10+ Best & Profitable Recruitment Business Ideas [2023]
• List of the Best Marketing Ideas For Your Recruitment Service:

How to Write a Recruitment Business Plan in 7 Steps:

1. describe the purpose of your recruitment business..

The first step to writing your business plan is to describe the purpose of your recruitment business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a recruitment business:

Our mission is to provide world-class and innovative recruitment solutions that help organizations find and hire the best talent to increase their competitive advantage. We strongly believe in the power of bringing together the right people and nurture a culture of employee satisfaction, growth and development.

2. Products & Services Offered by Your Recruitment Business.

The next step is to outline your products and services for your recruitment business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your recruitment business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your recruitment business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your recruitment business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a recruitment business?

• Internet access
• Recruiting software
• Phone line (landline or mobile)
• Business license and permits in accordance with local government regulations
• Advertising resources (e.g. newspapers, job boards, recruitment websites)
• Office space (if applicable)
• Business cards, stationery, brochures

5. Management & Organization of Your Recruitment Business.

The second part of your recruitment business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your recruitment business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Recruitment Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a recruitment business varies based on many different variables, but below are a few different types of startup costs for a recruitment business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your recruitment business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your recruitment business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your recruitment business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Recruitment Business Plans:

Why do you need a business plan for a recruitment business.

A business plan for a recruitment business is important because it serves as a roadmap outlining the objectives, strategies and action plans for the business. It can also help to identify potential risks, as well as ways to manage those risks, and establish financial goals. Furthermore, a business plan can help to attract potential investors or lenders and provide a basis for evaluating the success of the business.

Who should you ask for help with your recruitment business plan?

You should ask for help from an experienced recruitment consultant, business consultant, or a professional business coach. They can provide you with valuable advice and resources to help you create a successful business plan. Additionally, you may want to consult with a lawyer or accountant who have expertise in the recruitment industry.

Can you write a recruitment business plan yourself?

Yes, it is possible to write a recruitment business plan yourself. However, it may be more beneficial to consult a professional business plan writer to ensure the plan meets industry standards and contains all the necessary components. A professional also has experience in writing successful plans, which can greatly increase the chances of success.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Recruiting Company Business Plan Template

Written by Dave Lavinsky

Recruiting Company Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their recruiting companies.

If you’re unfamiliar with creating a recruiting company business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a recruiting company business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Recruiting Company Business Plan?

A business plan provides a snapshot of your recruiting company as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Recruiting Agency

If you’re looking to start a recruiting company business or grow your existing recruiting company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your recruiting company to improve your chances of success. Your recruiting company business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Recruiting Companies

With regard to funding, the main sources of funding for a recruiting company are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for recruiting companies.

Finish Your Business Plan Today!

How to write a business plan for a recruiting company.

If you want to start a recruiting company or expand your current recruiting company, you need a business plan. The guide below details the necessary information for how to write each essential component of your recruiting company business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of recruiting company you are running and the status. For example, are you a startup, do you have a recruiting business that you would like to grow, or are you operating a chain of recruiting businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the recruiting industry.
• Discuss the type of recruiting business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of recruiting business you are operating.

For example, you might specialize in one of the following types of recruiting businesses:

• Temporary Recruiting Company: In this type of recruiting company, you will specialize in temporary staffing solutions for short-term needs. For example, this company may focus on temporary staffing on behalf of an employee who has surgery and an extended recuperation.
• Job Candidate Sourcing Company: This type of recruiting company actively searches for potential job candidates via a variety of mediums in order to present candidates to companies actively seeking job candidates. Social media channels, such as professional networks, are often the platforms used as databases.
• New Hire Negotiations Company: This type of recruiting company negotiates on both sides of the table to arrive at a fully equitable hiring contract or agreement that both parties, the job candidate and the company executives, are willing to sign. This company often makes the difference between negotiations that cause a break in hiring and those that seamlessly and successfully hire for multiple positions every year.
• Specialized Industry Recruiting Company: A specialized recruiting company offers   recruitment services for a specific industry sector, such as aerospace contractors. Within the sector, certain positions must be filled to meet exacting needs, therefore, the specialized recruiting company can search for and assist in filling those needs.

In addition to explaining the type of recruiting business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of industry clients served, the amount of revenue received during the past six months, opening a second recruiting company location, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the recruiting company industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the recruiting company industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your recruiting company business plan:

• How big is the recruiting company industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your recruiting business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your recruiting company business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, recruiters representing companies, human resources executives, and government entities.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of recruiting company business you operate. Clearly, individuals would respond to different marketing promotions than government leadership, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regard to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other recruiting businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes introduction-by-acquaintance, conference coordinators, citywide associations or networking groups. You need to mention such competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of recruiting company are they?
• What is their pricing (premium, low, etc.)?
• What sets their business apart from others?
• What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And, don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide a bonus for temporary workers who complete their assignment?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a recruiting company business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of recruiting company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide part-time employees especially trained to work with senior citizens in physical therapy?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the services you offer and their prices.

Place : Place refers to the site of your recruiting company. Document where your company is situated and mention how the site will impact your success. For example, is your recruiting company located in a busy retail district, a business district, a standalone building, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your recruiting company marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to human resources executives
• Distribute direct mail pieces to your target audience
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) with target keywords on your website

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your recruiting company, including answering calls, planning and scheduling new hire introductions, paying invoices, contacting customers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to place your 100th candidate, or when you hope to reach $X in revenue. It could also be when you expect to expand your recruiting company to a second or third location.

Management Team

To demonstrate your recruiting company’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing recruiting company businesses. If so, highlight this experience and expertise. But, also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a recruiting business or successfully serving as an human resources manager is a corporation.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 25 candidates and 10 client executives per day, and/or offer special recruiting company sales online? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your recruiting business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit, but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a recruiting company business:

• Cost of office equipment and technology software
• Cost of furnishings or accessories
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computers, office supplies and equipment

Attach your full financial projections in the appendix of your plan, along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of friends and associates who are already lined up to contract for recruiting services from your business.

Writing a business plan for your recruiting company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the recruiting company industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful recruiting company.

Recruiting Company Business Plan FAQs

What is the easiest way to complete my recruiting company business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your subway business plan.

How Do You Start a Recruiting Company Business?

Starting a Recruiting Company business is easy with these 14 steps:

• Choose the Name for Your Recruiting Company Business
• Create Your Recruiting Company Business Plan
• Choose the Legal Structure for Your Recruiting Company Business
• Secure Startup Funding for Your Recruiting Company Business (If Needed)
• Secure a Location for Your Business
• Register Your Recruiting Company Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Reiki for Your Recruiting Company Business
• Buy or Lease the Right Recruiting Company Business Equipment
• Develop Your Recruiting Company Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Recruiting Company Business
• Open for Business

Learn more about how to start your own recruiting agency business . 

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Recruiting Company business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

How to Start an IT Recruitment Business

• Small Business
• Setting Up a New Business
• Starting a Business
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The Advantages of Recruiting New Employees

How can hr become a competitive advantage for any organization, how to start an oil- and petrochemical-related business.

• How to Put Together a Board of Directors
• The Steps to Starting New Labor Hiring Businesses

For entrepreneurs looking to start an information technology recruitment business, the technology sector presents opportunities for job growth and sustainability in tough economic times. For IT recruiting companies looking to generate job-placement commissions from employees making $75,000 per year or more, you will need a concrete business plan and human resources technology experience to create a profitable business.

Learn the IT recruitment business from a seasoned technology recruiter or an established technology firm. Experienced recruiters must develop strong relationships with chief information officers and IT managers before placing one candidate into an open position. An IT recruiting professional with a minimum of five years of inside sales experience will teach you important tricks and tips on how to shorten the recruiting sales cycle and how to build relationships with top executives.

Apply for all the documentation required by your local and state government to create a new IT recruiting business. Contact your Secretary of State’s office to determine what forms you will need to establish your company. Apply for an EIN number with the Internal Revenue Service to open a bank account and establish credit for your staffing organization.

Identify your niche. Positions within the technology field vary. Determine whether you will place Web developers and Web designers or programmers and database administrators. It is important to brand your IT firm as a company that staffs specific types of technology talent, instead of a general service-recruiting firm. By identifying your niche before your launch your IT recruitment business, you will attract qualified employees with existing technology contacts.

Make a list of your ideal IT recruiting clients. Once you’ve determined your niche and complied with state and local business requirements, identify the top 100 companies in your state that utilize IT staffing agencies. Prepare your marketing materials and sales letters to solicit temporary and permanent job-placement opportunities within your list of top clients.

Hire commissioned salespeople. To defray the high costs of employees in a technology start-up, hire experienced technology recruiters accustomed to working for 100 percent commission or a draw versus a commission salary arrangement.

Build your database of top IT talent. Without selecting and interviewing qualified IT workers, you cannot fill job orders and generate revenue. Within the first sic months of opening your recruitment business, interview and screen a minimum of 1,000 temporary and permanent workers to build a pool of qualified talent for open positions within the IT industry.

Create an offline and online marketing strategy. Become a thought leader within the IT recruitment industry. Give speeches at industry meetings. Create a blog to discuss recruitment strategies with potential clients and industry professionals. Develop a marketing plan that creates brand awareness and brand loyalty, beyond a memorable business name, website and logo.

• Ask the Headhunter: So, You Want to Be A Headhunter?

Mimi Abney is a lifestyle writer specializing in online content for women. Her work has appeared in NewsOK.com and "Keepsake Magazine," among other publications. With over 15 years of writing and editing experience for the web and print, Abney is also a contributor to online health, beauty and fashion publications. She holds a Bachelor of Science in biology from Spelman College.

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How to write a business plan for a recruitment agency

Table of Contents

Why a business plan is important

Provide direction,  minimise risk , reduce spending, market research , budgeting and financial planning, examples of swot analysis for a recruitment agency, opportunities , how countingup can benefit your recruitment agency.

If you’re looking to start a recruitment agency, you’ll need to create a business plan as any other startup would. Remember, though, that you’ll need to also account for the specific situations that might arise while working in the recruitment industry.

This article will serve as a guide to writing a great business plan for your recruitment agency. We’ll look at what your plan should look like, as well as why a plan is important. The topics we’ll cover include:

There are a few different reasons why you need a business plan before starting a business , but one of the most important is that it will guide your business going forward. Without a plan, no matter how simple the plan is, you’ll likely struggle to develop your business and make effective decisions. 

A business plan doesn’t have to be set in stone — you can adapt it to account for any unique events that affect your recruitment agency. That said, it’s essential to have at least a vague idea of the purpose your business will serve, the potential obstacles you might encounter, and how you’re going to deal with those obstacles.

A business plan is also necessary to minimise the risk you’ll face when starting a recruitment agency . One of the key sections of a business plan is the SWOT analysis, where SWOT stands for strengths, weaknesses, opportunities and threats.

In order to minimise risk effectively, it’s vital that you analyse both the weaknesses of your agency as well as the threats it may face. In doing so, you’ll be able to fix your weak points and avoid potential threats more effectively.

Finally, business plans are important because they provide valuable data for minimising your spending. For example, during your SWOT analysis and financial planning , you may find that you’ve budgeted a large amount of spending to support a part of your business that’s actually very strong. 

In a recruitment agency, this might mean you’ve planned to spend a lot of money on marketing, but your business already has a strong brand because you (as the owner) have many good personal contacts in the industry. In this instance, you can safely reduce your marketing budget and save your business money. 

Thorough market research is the best first step when you’re writing a business plan . Market research means examining the industry your business will exist in, and finding out the needs and preferences of that industry’s consumers.

For a recruitment agency, a key research topic for your business plan would be finding out the impact COVID-19 has had on the market. Many new markets emerged during the pandemic, which you can provide your services to. As the UK is currently recovering from the pandemic, it would also be wise to look into which industries are now recruiting heavily after laying off staff in recent years.

Planning out how you’ll spend your money when starting your agency is also a key part of a good business plan. You need to consider your budget for starting the business as well as how you’ll manage your business finances going forward.

It’s smart to prepare a budget for each section of your business. For instance, you might set aside different amounts for recruiting staff, purchasing business premises, and marketing. Your advertising budget is particularly important when you’re a small business , as you may not be able to rely on personal contacts or existing clients for referrals, so you’ll need to attract clients independently.

Conducting a SWOT analysis is a great way of evaluating your business even after starting up, but it’s particularly helpful when you first put together your business plan. SWOT stands for strengths, weaknesses, opportunities and threats, so a SWOT analysis requires you to think of an example of these for your business. In a recruitment agency, these might be:

As mentioned above, it may be that you have a good reputation because you have a wealth of experience and personal connections in the recruitment industry, so you’ll not need to worry as much about marketing.

Recruitment agencies frequently have to use a lot of software to track their clients’ needs and organise candidate applications. If you’re not very good with technology, you may need to hire staff who are to account for this weakness.

The UK is currently rebounding from the struggles of the COVID-19 pandemic, and this presents a wealth of opportunities for a good recruitment agency.

You need to take immense care when you’re handling people’s personal information, which you’ll often do at a recruitment agency. Sending this information to the incorrect person can have a considerable negative impact on your business, as there is a lot of new legislation regarding privacy. 

Your business plan should include a good amount of financial planning, as tracking your cash flow (your incoming and outgoing cash) is hugely important in any business. 

Countingup is the business current account with built-in accounting software that allows you to manage all your financial data in one app. With features like automatic expense categorisation, invoicing on the go, receipt capture tools, tax estimates, and cash flow insights, you can confidently keep on top of your business finances wherever you are. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward! 

Find out more here .

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Business Plan Template for Recruitment

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Recruitment agencies and talent acquisition businesses know that success in the competitive industry hinges on strategic planning. That's where ClickUp's Business Plan Template for Recruitment comes in!

This comprehensive template allows you to outline your recruitment strategies, set objectives, define your target market, project your finances, and establish operational processes. With ClickUp's Business Plan Template for Recruitment, you'll have a roadmap to guide your growth and ensure your business thrives in the ever-changing recruitment landscape.

Don't leave your success to chance. Get started with ClickUp's Business Plan Template for Recruitment today and take your talent acquisition business to new heights!

Business Plan Template for Recruitment Benefits

A business plan template for recruitment offers numerous benefits to recruitment agencies and businesses in the talent acquisition field, including:

• Streamlining operations and ensuring consistency in recruitment processes
• Setting clear objectives and goals for the agency's growth and success
• Identifying target markets and defining strategies to reach and attract top talent
• Creating a financial roadmap, including revenue projections and expense management
• Providing a comprehensive overview of the agency's competitive landscape and positioning
• Guiding decision-making and resource allocation to achieve long-term sustainability and profitability.

Main Elements of Recruitment Business Plan Template

Create a winning business plan for your recruitment agency with ClickUp's Business Plan Template for Recruitment. This comprehensive template includes:

• Custom Statuses: Track progress with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring every task is accounted for in your recruitment business plan.
• Custom Fields: Utilize custom fields such as Reference, Approved, and Section to add relevant information and organize your recruitment strategies, financial projections, and operational processes.
• Custom Views: Access different views like Topics, Status, Timeline, Business Plan, and Getting Started Guide to get a comprehensive overview of your recruitment business plan and easily navigate through different sections.

With ClickUp's Business Plan Template for Recruitment, you can streamline your planning process and set your recruitment agency up for success.

How To Use Business Plan Template for Recruitment

If you're looking to create a business plan for recruitment, ClickUp has a template that can help you get started. Here are four steps to effectively use the Business Plan Template for Recruitment:

1. Define your business objectives

Before you start creating your business plan, clearly define your objectives and goals for your recruitment agency. Are you looking to specialize in a particular industry? Do you want to focus on temporary or permanent placements? Understanding your business objectives will help shape the rest of your plan.

Use Goals in ClickUp to define and track your business objectives for recruitment.

2. Identify your target market

Next, identify your target market and the types of clients and candidates you want to attract. Consider factors such as industries, job levels, geographic locations, and any specialized niches you want to focus on. Understanding your target market will help you tailor your recruitment strategies and services accordingly.

Use the Board view in ClickUp to create columns for different target markets and track your progress in attracting clients and candidates.

3. Develop your marketing and recruitment strategies

Once you have identified your target market, it's time to develop your marketing and recruitment strategies. Consider the channels and platforms you will use to promote your agency, such as social media, job boards, and networking events. Determine how you will attract candidates and clients, and outline your approach to sourcing, screening, and placing candidates.

Use Automations in ClickUp to streamline your recruitment processes and save time on repetitive tasks such as sending follow-up emails or scheduling interviews.

4. Create a financial plan

Lastly, create a financial plan for your recruitment agency. This should include your projected revenue, expenses, and profitability. Consider factors such as fees, commissions, and any additional services you plan to offer. It's also important to set financial goals and milestones to track your progress and evaluate the success of your business.

Use the Gantt chart in ClickUp to create a timeline for your financial goals and milestones, and track your revenue and expenses over time.

By following these steps and using the Business Plan Template for Recruitment in ClickUp, you can create a comprehensive and effective business plan for your recruitment agency. Good luck with your venture!

Get Started with ClickUp’s Business Plan Template for Recruitment

Recruitment agencies and businesses can use the ClickUp Business Plan Template for Recruitment to create a comprehensive roadmap for their growth and success in the competitive recruitment industry.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create your recruitment business plan:

• Use the Topics View to outline and organize the different sections of your business plan, such as objectives, target market, financial projections, and operational processes
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View will give you a visual representation of your business plan's timeline, allowing you to set deadlines and milestones
• The Business Plan View provides a comprehensive overview of your entire recruitment business plan, allowing you to easily navigate and review all sections
• The Getting Started Guide View will provide step-by-step instructions and tips on how to use the template effectively
• Utilize the custom fields Reference, Approved, and Section to add additional information and categorize different aspects of your business plan
• Update statuses and custom fields as you progress through each section, ensuring that all team members are aware of the current status and any required revisions
• Regularly review and analyze your business plan to ensure that it aligns with your recruitment agency's goals and objectives
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How to write a business plan for your recruitment agency.

Starting a recruitment agency is a great idea because it provides a valuable service to employers and job seekers alike.

It is a great way to bridge the gap between the two and facilitate successful career placements.

But, first thing first, you need a business plan.

A business plan is essential for any new project, as it allows you to clearly define your goals, objectives, and strategies for success. It also provides a roadmap for the future, helping to ensure that your project is successful in the long term.

In short, a good business plan will help make sure your recruitment agency is profitable .

What information should you put into the business plan of a recruitment agency? What's the basic outline for the structure? What financial metrics should be included? What steps should I follow to write a business plan efficiently?

Stay with us: we'll tackle all these questions!

One last thing, you don't have to start your business plan from scratch.

Feel free to download our detailed business plan for a recruitment agency and customize it for your business.

Mapping out a business plan for a recruitment agency

Do you need to develop a business plan for your recruitment agency.

Yes, you need to develop a business plan for your recruitment agency.

Crafting a well-structured business plan will help you to:

• get familiar with the recruitment agency market
• be aware of new consumertrends and apply them to your project
• recognize profitability factors for a recruitment agency
• understand the hiring needs, job requirements, and talent preferences of client companies
• come up with a winning value proposition for your staffing services agency
• identify potential competitive threats
• find distinctive competitive edges for your recruitment agency
• find a business model that delivers consistent positive financial outcomes
• formulate an airtight strategy to maximize business growth
• evaluate potential risks specific to a recruitment agency, including client satisfaction, candidate vetting, and legal compliance

Our team has created a business plan for a recruitment agency that is designed to make it easier for you to achieve all the elements listed.

How to organize a business plan for a recruitment agency?

Inside a business plan, you'll find a lot of important information and details. It must be presented in a structured format, to make easy to read and digest.

When we built and designed our business plan for a recruitment agency , we made sure to structure it propertly.

We've categorized it into 5 sections (Opportunity, Project, Market Research, Strategy and Finances).

1. Market Opportunity

The section number one is titled "Market Opportunity."

In this section, you will find valuable data and insights about the recruitment agency, helping you understand the market landscape and assist companies in finding and hiring top talent.

We constantly update all the data there.

2. Project Presentation

The second part is dedicated to the "Project" of your recruitment agency. Here, you can outline the industries you specialize in, recruitment services offered, candidate sourcing strategies, screening and selection processes, client partnerships, and the unique value proposition that connects top talent with the right job opportunities.

Also, provide a self-introduction at the end of this section.

Discuss your expertise in talent acquisition, your range of recruitment services, and how you plan to provide comprehensive and tailored staffing solutions to clients. Highlight your industry knowledge, your network of professionals, and your dedication to matching the right talent with the right opportunities through your recruitment agency.

We drafted some language for you in our business plan. Adjust it to suit your idea perfectly.

3. Market Research

Then, there is the "Market Research" section.

In this section, you will find a detailed market segmentation analysis for your recruitment agency.

It includes a presentation of other recruitment agencies in the area that will be competing with you. Your agency's expertise in talent acquisition and competitive advantages are also highlighted. A customized SWOT analysis is included.

4. Strategy

The "Strategy" section outlines a comprehensive 3-year action plan, detailing the initiatives and steps needed to transform your recruitment agency into a highly profitable endeavor.

Additionally, there's a marketing strategy, a risk management strategy, and a Business Model Canvas available in this section.

5. Finances

In the end, you'll find the "Finances" section, which provides a comprehensive overview of the financials for your project.

How to make an Executive Summary for a recruitment agency?

The Executive Summary serves as an introduction to the business plan for your recruitment agency.

Keep it concise and ensure it fits within 2 pages. Highlight only the necessary details.

When you present your business plan to investors, this is the section they will read first. It needs to grab their attention and make them want to explore the rest of the plan.

In the Executive Summary of your recruitment agency, address the following queries: what services does your recruitment agency offer? who is your target market? are there other recruitment agencies in the industry? what sets you apart from them? what funding do you require?

How to do the market analysis for a recruitment agency?

Analyzing the market for your recruitment agency allows you to gain insights into factors such as client demands for talent acquisition, competition within the recruitment industry, and emerging trends in HR and staffing.

By conducting a thorough market study, a recruitment agency can understand client hiring needs, offer effective recruitment solutions, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a larger client base, increased job placements, and a prominent position in the recruitment industry.

Here is what you can expect to find in the "Market Research" section of our business plan for a recruitment agency :

• market trends and data about recruitment agencies, including job market analysis, talent acquisition strategies, and industry-specific hiring trends
• a list of potential customer segments for a recruitment agency
• the competitive comparison
• the potential competitive advantages for a recruitment agency

The key points of the business plan for a recruitment agency

What's the business model of a recruitment agency, business model of a recruitment agency.

A recruitment agency's business model revolves around connecting employers with qualified candidates for job openings. Revenue is generated through fees or commissions based on successful placements.

The business model focuses on understanding clients' hiring needs, conducting candidate sourcing and screening, effective marketing to attract employers and job seekers, and building strong client and candidate relationships based on trust and expertise in recruitment.

Success depends on building a robust candidate database, delivering suitable talent for job openings, fostering positive client and candidate experiences and recommendations, and continuously adapting to changing recruitment methods and job market dynamics.

Business model ≠ Business plan

Make sure you differentiate between "business plan" and "business model."

A business model describes how a company generates income and operates successfully.

In a business plan, you articulate your business model through a framework known as the Business Model Canvas.

Rest assured, there is a Business Model Canvas (already completed) in our business plan for a recruitment agency .

How do you identify the market segments of a recruitment agency?

Market segmentation for your recording studio involves dividing your potential clients into different groups based on their recording needs, music genres, and preferences.

These categories may include factors such as music artists, voice-over artists, podcasters, or clients seeking specific recording services or equipment (e.g., vocal recording, sound mixing, podcast production).

By segmenting your market, you can offer specialized recording services and facilities that cater to each segment's specific requirements. For example, you might focus on music artists and provide state-of-the-art recording studios equipped with instruments and production tools for music production, offer professional voice-over recording services for clients in need of high-quality voice recordings for commercials, audiobooks, or animations, specialize in podcast production and provide podcasters with dedicated recording spaces and podcast editing services, or focus on specific recording services or equipment such as vocal recording, sound mixing, or audio mastering.

Market segmentation allows you to effectively target your marketing efforts, communicate the capabilities and technical expertise of your recording studio, and provide a creative and professional recording environment that meets the unique needs and preferences of each client segment.

In the business plan for a recruitment agency , you will find a comprehensive market segmentation that will help you better understand your potential customers.

How to conduct a competitor analysis for a recruitment agency?

Without surprise, you won't be the only recruitment agency in your market. There will be other agencies offering staffing and talent acquisition services to organizations.

Understanding your competitors' strengths and weaknesses is critical when developing your business plan.

Identify their weaknesses (such as limited industry connections, inadequate candidate screening, or poor client communication).

Why is it important to address these elements? Because these weaknesses can impact the effectiveness of recruitment agency services.

By focusing on these areas, you can offer a wide network of qualified candidates, provide efficient and thorough recruitment processes, and deliver personalized and attentive client support, positioning your recruitment agency as a trusted and preferred partner for businesses seeking top talent and successful staffing solutions.

It's what we call competitive advantages—develop them to make your business stand out.

Here are some examples of competitive advantages for a staffing agency: extensive network of qualified candidates, personalized recruitment solutions, timely placements.

How to draft a SWOT analysis for a staffing agency?

A SWOT analysis can help identify the strengths, weaknesses, opportunities, and threats of a recruitment agency, enabling informed decision-making and increased success.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a recruitment agency

The strengths for a recruitment agency

When we talk about the "S" in SWOT, we mean Strengths, which are the project's internal capabilities or unique strengths.

For a recruitment agency, possible strengths could include an experienced team, a strong network of contacts, an extensive database of candidates, and a comprehensive understanding of the recruitment market.

The weaknesses for a recruitment agency

W stands for Weaknesses, referring to the project's areas or aspects that have room for improvement.

For a recruitment agency, potential weaknesses include difficulty in finding suitable candidates, lack of access to a large pool of qualified applicants, high cost of advertising to attract talent, and potential clients not trusting the agency.

The opportunities for a recruitment agency

The letter "O" in SWOT signifies Opportunities, highlighting the favorable conditions or chances for the project's progress.

In the case of a recruitment agency, potential opportunities include providing executive search services, offering temporary staffing solutions, providing online job postings, and providing career coaching services.

The threats for a recruitment agency

When we use the "T" in SWOT, we're referring to Threats, which are the external risks or challenges that the project may encounter.

How to develop a marketing plan for a staffing agency?

A marketing strategy is a key factor in acquiring customers and increasing revenue, so include it in your business plan.

A well-crafted marketing strategy will attract companies and job seekers to your recruitment agency, emphasizing your expertise in matching the right talent with the right job.

Companies won't hire your recruitment agency without effective marketing; showcasing your talent pool and personalized approach is crucial.

Are you utilizing marketing tactics to attract clients to your recruitment agency? Consider building strong relationships with local businesses and job seekers, offering specialized recruitment services, and utilizing digital marketing strategies to showcase your expertise in the industry.

Don't let a lack of ideas for your project's marketing strategy discourage you.

How to build a solid financial plan for a staffing agency?

A solid business plan must include financial data to provide an accurate assessment of the business's potential success.

Obviously, you should estimate the projected revenue for your recruitment agency.

It's crucial for this revenue forecast to be clear and straightforward.

Our financial plan for a recruitment agency is easy to use and includes built-in checks to help you identify and correct any assumptions, ensuring you create reliable projections with confidence.

Without a doubt, you'll need to come up with a basic budget for starting your recruitment agency. Make sure to include every expense (by the way, they are all listed in the financial plan we've made).

The break-even analysis is central in the financial plan as it will tell you whether your recruitment agency will generate profits or not.

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All About People

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

All About People (AAP) began out of the desire to contribute to this community, just as communities have fed All About People’s proprietor over the years. Although originally from a larger market, the proprietor realizes the need in the southern Willamette Valley for a personnel agency that fills a void left by other temporary and permanent placement agencies. AAP matches specifically skilled workers with clients, saving businesses time and money, while providing for its employees with honesty and honor. This requires a high level of communication. It means asking open-ended questions and listening, not talking. This means knowing the local market so AAP can really serve each client and employee, not just “sell” them our goods. AAP is quality service.

The long-term vision includes a number of offices throughout the southern Willamette Valley. The proprietor sees the challenge in this vision, not in the growth itself, but in training and encouraging all AAP personnel to treat each client and employee with the same care and with the same level of communication.

Managing our Growth AAP is a sole proprietorship that will convert to an S Corporation. As a new corporate entity, AAP will be treated as a start-up in this business plan. During the past couple of years the proprietor provided all services. In Year 1, the company will add a part-time office staff person and an employment specialist. In response to this growth, AAP will have a procedures manual for in-house staff to assure that the information is clear. In addition, AAP will provide employees with regular training within the divisions to assure they understand the details of the work they are doing daily. Year 2 projections include a receptionist, another employment specialist, and a field representative. In Year 3, AAP will examine the feasibility of opening a branch office in the Salem, Bend, or Medford/Ashland areas.

The Market AAP is structured like other temporary and permanent placement agencies. However, it will serve clients with needs for select, specialized professionals rather than clerical or light industrial workers. Several businesses in Portland, Oregon provide a similar service to specific groups of people, but there are none for the Willamette Valley. AAP has five divisions, targeting the following areas of expertise:

• Editors/Writers

Event Planners

Graphic Artists

• Interpreters/Translators.

Services AAP will handle recruiting, including reference checks, skills evaluation, preliminary interviewing,  and screening of all employees for its clients. AAP acts as an extension of the client’s human resource department, assuring that there is open communication between supervisor and employee, and assisting with any troubleshooting or problem solving that may be needed.

Financials The company’s start-up requirements are $55,464, of which $7,600 will be provided for by the owner’s personal investment. The rest will be obtained through loans.

We expect to be able to charge a 50% markup to our business clients. Thus, if an employee is being paid $10 per hour, we are charging the client $15 per hour. The company predicts that it will be able to produce sales of approximately $300,000 by Year 3. The company does not have any direct cost of sales; we track payments to placed individuals as regular payroll.

1.1 Objectives

AAP is structured like other temporary and permanent placement agencies. However, we serve clients with needs for select specialized professionals, rather than clerical or light industrial workers. Several businesses in Portland, Oregon provide a similar service to specific groups of people. AAP followed the model of one placement firm described below.

A contract engineering firm places temporary workers who are hardware and software engineers. Employees earn between $80- $100 per hour and approximately seven employees are placed per month. The firm recruits through its website, advertises in newspapers, magazines, and trade publications. Incentives offered to contingent workers include medical, dental, and disability insurance, 401(K), and a reference finder’s fee for placement referrals. They find their employees are 60 percent male, 40 percent female, and ages spread evenly.

AAP serves the business client by locating a professional worker, interviewing and screening that worker, setting up interviews if necessary, and administering all hiring paperwork. The company runs payroll and bills the client bi-monthly. AAP will also manage the professional, staying in close contact with the client and communicating with the worker regarding any personnel issues that may arise.

The professional worker is served with employment opportunities at no cost; pay rates that are within industry standards; and health insurance may be purchased, if a worker becomes eligible, at a group rate starting at $124/mo. AAP will pay $65/mo for any coverage chosen from the group package.

1.2 Mission

All About People’s mission is to contribute to the community by filling a need for specialized, professional, contingent workers. The company will provide workers with a safe and independent environment. It will also provide businesses with a high-caliber of employee available for project or permanent work. All About People listens to individual needs and customizes personnel solutions for both businesses and workers.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

AAP is a temporary and permanent placement personnel agency working solely with skilled, professional workers and Willamette Valley businesses. AAP differs from other temporary and permanent placement agencies because of our skilled workers. The company believes that the temporary industry pays only cursory attention to providing businesses highly qualified workers for permanent and non-permanent positions. AAP has five divisions, targeting the following areas of expertise:

AAP does not provide general clerical, light industrial, engineers, accountants, nurses, or other medical technicians.

AAP does the following for each client:

• Recruiting (reference checking)
• Skills evaluation (preliminary interviewing)

AAP conducts regular evaluations: AAP checks in with the supervisor and the worker during the first week on the assignment. AAP then checks in as agreed with the client. AAP acts as an extension of the client business’ human resource department assuring that there is open communication between supervisor and employee, and assisting with any troubleshooting or problem solving that may be needed.

Prior to opening our doors, research showed support for the development of a personnel agency working solely with professional contingent workers and Willamette Valley businesses (see topic 7.3 Supporting Research).

According to the Oregon Department of Employment, Lane County has 31 temporary agency firms with 3200 individuals employed. Total employment figures for Lane County are 250,000; therefore, we support between two and four percent of the population.

Through connections in a variety of areas, AAP is able to locate qualified workers not only through advertising, but through a channel of networking. This past year has shown that qualified, willing workers are certainly available as we currently have hundreds on staff willing and able to work.

2.1 Company Ownership

AAP is a sole proprietorship that will convert to an S Corporation. As a new corporate entity, AAP will be treated as a start-up in this business plan.

The sole proprietor, Sarah Wayland, can be reached at AAP’s office, [contact information omitted in this sample plan].

2.2 Start-up Summary

Projected start-up figures are shown in the chart and table below.

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The company is uniquely positioned to take advantage of this market opportunity because of the management and field expertise of the proprietor. Sarah Wayland worked in the temporary employment industry for three years with ADIA Personnel Services (now ADECCO) as Area Account Manager (in training as a branch manager): building business relationships; hiring employees; handling employee issues; working with clients during the implementation of ADIA; and opening an additional office in Beaverton, Oregon.

For one year the proprietor was a District Sales Manager at Columbia Distributing, showing a 10% increase on $3.5 million in annual sales. Managing a staff of nine in sales and customer service, she had the opportunity to delve further into hiring/firing, reviewing, incentives outside of salary, and personnel issues.

Most recently, she has spent several years as Funds and Contracts Manager at the Oregon University System; managing four grants totaling $1.5 million annually and all personal service and interagency contracts as well.

The proprietor’s most notable success was bringing the second branch of Cellular West located in Portland, Oregon, from running in the red, to breaking even within four months of its opening. She accomplished this by using motivational tools and providing the sales force with extensive training.

3.1 Products and Services Plan

Changing labor market conditions threaten the concept of full-time permanent employment.

AAP provides a complex blend of services to distinct populations. The company serves businesses through connecting them with the professional contingent work force. It also serves the worker by connecting them with businesses, at no charge, and providing benefits not often provided by other employment agencies.

Market Analysis Summary how to do a market analysis for your business plan.">

All About People (AAP) is a local firm that costs less than a consultant or agency, provides for both project and long-term needs, and has an easy, pay and billing rate system that covers employee payroll and worker’s compensation insurance.

There are a variety of reasons why businesses may need AAP’s services:

• Spikes in work load
• Business expands into an area that in-house expertise does not yet match
• Special events
• Pregnancy leave or sabbatical
• Business increases after layoffs
• Smaller business does not yet have staff on-hand to complete extra projects.

According to economic forecasters, employment agencies and financial services are expected to have the largest industry growth over the next 25 years. The trend toward businesses cutting back on employees and their benefits due to high costs creates the demand for AAP’s services.

Just consider the time, energy, and resources an employer may spend trying to employ a person for a 20-hour task.

In addition to the already lucrative temporary industry, several companies in the Portland Metro Area place professional contingent workers, but the southern Willamette Valley is not currently being served.

The company approaches businesses primarily through networking and cold calls. Our intention is to utilize a PR agency for more coverage as soon as possible. AAP is a member of the area Chamber of Commerce and actively participates in as many activities as possible, the proprietor is a member of the Women’s Business Network, the Professional Women’s Organization, and we are in the process of connecting with the Society for Human Resource Management. Prior to start-up, AAP also surveyed several area businesses about their use of contingent workers. The company will use its website and other marketing materials that describe what services we provide and explain how simple it is to work with us.

AAP advertises in local papers and trade magazines when absolutely necessary, but most often uses the Oregon Employment Department, both community college and university campuses, and the networking groups we are members of to search out the right employee. Prior to the sole proprietor start-up, the company started recruiting by administering twenty personnel surveys and advertising locally to create a staff of qualified contingent workers. This staff will be unaffected by AAP’s corporate restructuring.

4.1 Market Segmentation

The market can be broken down into two segments: the business market segment, and the employee market segment. Both of these segments are lucrative.

Business market targets: The company targets the University of Oregon, Lane Community College, the nonprofit organizations, the publishing industry, the advertising industry, and other large businesses.

Employee market targets: Editors/writers, graphic artists, computer specialists, event planners/fundraisers, and language translators/interpreters working in the business target markets listed above, as well as any applicants with unusual skills and talents.

4.2 Service Business Analysis

These charts demonstrate the types of workers employed, the type of qualified professionals on file to work for the company, and the types of businesses who have used AAP’s services. These statistics cover the 15-month sole proprietorship period from July 1, 1998 through September 30, 1999.

Types of workers employed by or signed up with AAP

Types of employers using AAP

Each and every contact is entered into the database-either in the professionals file if they are a potential candidate, or in the contacts file if they are another type of contact. The client and jobs files utilize the contact and client numbers to automatically fill in the information from the contact or client files. This means no duplicate typing. In addition, the contacts, clients, and professional files all have follow-up sheets attached making daily follow-up easy. Simply pull the file up for that day and all calls that need to be made that day will be marked.

Searching is easy. The check boxes within each professionals file allows us to check for singular or multiple skills and experience with a click and a return.

4.2.1 Competition and Buying Patterns

First form filled out from the moment the candidate calls. Three screens constitute one file: Personal Information; Job Information; Skills. The professional and contact files have a conversation record that will allow easy follow-up with a list daily of those records needing a call.

Interview Form

Directly from the employee forms the Employment Specialist can select the appropriate interview form. This form consists of three sheets: Basic Questions; Other Information/Recommendations; and Reference Checks.

Employee Profile Sheet

From the above information, a profile sheet is generated in hard copy for the inside of each file. This is our second backup system (besides the tape drive) in case of a power outage, etc.

4.2.2 Contact Sheet

This form is used for all other contacts. From here, a contact can be turned into a client by merely typing the contact number in on the client sheet, automatically bringing in all of the information.

4.2.3 Client Sheet

The client sheet is easily created by filling in the contact number. All pertinent information is automatically entered. The client sheet has its own contact sheet attached generating a daily follow-up list. The client files can also be pulled into a handy contact list.

Strategy and Implementation Summary

AAP is completely service minded, customizing personnel packages and offering the most it can to both employers and employees. The company brokers professional workers to Willamette Valley businesses. Because we serve two distinct groups of people, both businesses and employees will be considered equally important to AAP.

The company consists of five divisions, targeting the following types of workers and needs in businesses:

Computer Division

• Computer Application Specialists
• Computer Hardware Specialists
• Computer Programmers
• Network Administrators
• Web Specialists

Editor/Writers

• Multi-lingual
• PR/Marketing
• Fundraisers
• Large and Small

Language Interpreters and Translators

• Multiple Languages
• Person-to-Person

Within these categories, we originally set up a system of single sheets on card stock and filed them in binders. Since then, an electronic database has been created by one of our professionals. With the push of a button, AAP can search for a client or an employee needed.

Businesses and employees will be able to communicate with AAP via both new technological and traditional methods. Our Web page provides information about AAP including what professional fields we serve, what clients we are working with, and what services we offer. A second-generation Web page will provide information about employees for businesses through a password-protected area. AAP forwards candidates’ resumes and other information through a variety of methods: phone, fax, personal visit, mail, and the Web page.

In August 1999 we moved the offices to the center of town. Accounting is handled electronically by the proprietor through QuickBooks, with the complex needs handled by our CPA. All payroll is generated through the payroll service, Paychex. The office is furnished with all of the technology needed to operate on a daily basis, increase market share, and serve clients.

5.1 Competitive Edge

When a business is contacted and expresses interest in contingent employees that the company can provide, the following procedures will be followed:

• Consult with client and create a follow-up plan.
• Complete the contact, client, and job sheet in the database.
• Print one of each and forward a copy of the job sheet on yellow paper to the employment specialist.
• File original sheets in the appropriate binders.
• Search for matches in the database and pull each folder that looks like it will work.
• Review that folder to assure a match.
• Call each potential candidate and discuss the job and pay to its fullest.
• Fax, e-mail, or otherwise contact client with information and/or resumes for review.
• Schedule interviews or make a decision on appropriate candidates.

5.2 Sales Strategy

When an employee seeks to work with the company, the following procedures will be followed:

• Complete the professional’s form in the database.
• While completing this sheet, screen the employee for experience levels, requiring professional experience in each arena they wish to work.
• Set up an interview with the employment specialist if the professional is qualified.
• Create a file for each employee and place all paperwork, along with a copy of the professional’s form.
• Keep in touch with the professional quarterly if nothing comes up, more often if at all possible.
• When the professional agrees to a position, they will be supplied with an employee policy manual, pieces of letterhead for invoicing, and will complete the IRS I-9 and W-4 forms prior to beginning work.

5.2.1 Sales Forecast

Our sales forecast projections are presented in the chart and table below. Three years annual projections are shown in the table.  The chart shows first year monthly forecast.  First year monthly table is included in the appendix.

5.2.2 Target Market Segment Strategy

The pay rate data will be determined by changing market factors including business demand.

Our experience shows that the following is true in regards to pay and bill rates. A “good deal” for most temporary agencies is a 50% of pay rate markup. Thus, if the pay is $10, the bill is $15. However, we have traditionally used a flat markup that seemed appropriate. Pay and bill rates generally are outlined as follows:

Editors Most editors require between $25 and $35 per hour, and our history has shown a $10 per hour markup is acceptable. One exception is in the technical arena, garnering between $45 and $55 per hour pay; again a $10 per hour markup is typical.

Writers The only writing we have done is creative for [client name omitted], and we paid $15 with a $10 markup.

Event Planners Event planners often will work for between $12.50 and $25 per hour, depending on the length of the job, requirements, and experience needed. We find a $5 per hour markup on the $12.50-$17.50 is reasonable, and a $10 per hour markup on anything over $17.50 per hour.

Fundraisers Fundraisers can start at $10 per hour (nonprofit) and go up to $20 per hour. This usually depends on client and length of assignment. Bill rate markup for nonprofits is $5 per hour, others between $7.50 and $10 per hour.

Graphic Artists Entry level beginning at $12.50 per hour, intermediate at $15 per hour, and a top of the line professional at $25 per hour. The exception may run about $50 per hour. Bill rates are between $7.50 per hour markup ($12.50-$15), and $10 markup.

Language Interpreters This is a tricky arena. Pricing depends on the language (typical/atypical) and the length of the assignment. Interpreters have been known to work for as little as $15 per hour and for as much as $35 per hour. A $10 per hour markup is acceptable.

Language Translators This division is difficult as each language and situation varies slightly. Translators tend to work by page or by word. Technical translation can be as much as $.30 per word. Other translation can be $10 per hour (an hour a page). We are unsure of markup at this time, but would suggest 50% of pay rate.

Computer Specialists:

• Application-Starting at $12.50 an hour based on Xerox experience. Markup $5 per hour.
• Programmer-Starting at $20 an hour based on AlbertIQ experience. Markup $10 per hour at a minimum. Try for $15.
• Web Designer-Entry level positions can start at $10 per hour with a markup of $5. Project work typically starts at $15 an hour, markup at least $10 per hour.
• Administration-Pay rates range between $50 and $75 per hour, with a preferred markup of $25 per hour.

When determining the bill rate, additional expense factors to remember above the pay rate are 15% employer taxes, advertising, and staff time to fill the position.

5.3 Milestones

The company has an outstanding client list and an incredible number of qualified employees available. AAP has a good reputation for providing qualified people in a timely manner.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

In a variety of settings the proprietor of AAP has strong management experience. The proprietor has the skills to not only listen well, drawing out a person’s needs through open-ended questions, but also has the ability to recognize people’s strengths and weaknesses. She will draw upon this extensive successful experience in addition to the knowledge collected over a period of 18 years working professionally. Much of the “people” skills have been developed during the seven years spent in management roles. This experience, along with a varied background, supports AAP’s goals.

AAP’s objectives are threefold:

• To provide high quality, experienced, professional workers to businesses that are currently relying on the instability of word-of-mouth contacts, and are spending much of their time and resources (and, therefore, money) locating such workers;
• To provide these workers with a path by which to reach the employer without spending their own time, money, and energy finding the work; and
• To use this opportunity to make the contingent work force a better place for both the employer and the employee.

The long-term goal of the company is to franchise and/or to become multi-location, and eventually sell this business.

Management is a style, a belief, and a strategy.

In managing our clients, AAP will communicate regularly with them, setting up a schedule that meets their needs. The company will set goals for retention of clientele and strive to reach those goals by building relationships, listening to the client’s needs, and meeting those needs with a smile on our faces. We will take responsibility for our errors and the outcome.

In managing our workers, AAP will communicate regularly with them, providing them with an employee manual to minimize their confusion, and offer them the best pay and benefits possible. AAP will set goals for retention of employees and strive to reach those goals by treating each employee with respect, provide protection when appropriate, and do everything within our power to assure a healthy working environment.

This is a relationship business. AAP will manage all clients and employees through relationship building.

During 1998-99 the proprietor provided all services. In 2000 the company will add a part-time office staffer and an employment specialist. In response to this growth, we will have a procedures manual for in-house staff assuring that the information is clear. In addition, we will provide employees with regular training within the divisions to assure they understand the details of the work they are doing daily. 2001 projections include a receptionist, another employment specialist, and a field representative. In 2002 AAP will examine the feasibility of opening a branch office in the Salem, Bend, or Medford/Ashland areas.

6.1 Payroll

All About People runs its payroll twice a month. Each professional will be given a check schedule when they work with AAP. Each check covers the previous two weeks.

In order to process payroll; AAP must receive a professional’s signed invoice the Wednesday prior to payday. The invoice, must be on AAP letterhead and include: name, social security number, mailing address, dates of work completed, location worked (at home, at the client’s office), one or two sentences describing what tasks were completed, and how much time was spent each day. At the bottom there must be a place for the client to sign and date in acceptance of the work to date. The original will be submitted to AAP, the client will receive one copy, and the professional will keep a copy.

AAP is unable to provide payroll advances. If a check is lost in the mail, we must wait seven days from the date of mailing, and then if the check has not arrived we will stop the check at the bank and have one reissued.

6.2 Benefits

Because we value our employees, we have employee group health insurance available, and contribute a major portion of the monthly premium. According to the Insurance Pool Governing Board (IPGB) employees must work at least 17.5 hours per week. Employees who work intermittently or who have worked fewer than 90 calendar days are not eligible. IPGB also states that all carriers may decline to offer coverage to the business or to any employee.

Technically, All About People is employer of the professionals we place. This means that we are responsible for covering the worker’s compensation insurance, running payroll, and that we are the ones to whom each employee is responsible. We understand that this can be tricky when employee professionals are working with a client, so we want to describe the expectations of this relationship:

• If the professional doesn’t understand the work or assignment that has been given by the client, then discuss the work with the client.
• If there are issues at work, the employee should inform AAP and then speak with the client.
• If these issues continue, the employee should talk with AAP immediately.
• If the professional feels they are being harassed at work they should let AAP know immediately.
• If the employee should be being asked to perform tasks other than the original assignment, the employee should talk with AAP before beginning any tasks other than the original assignment.
• If the professional is being asked to work overtime (more than 40 hours per week), they should let us know immediately.

AAP does not guarantee either work or wages when you join us to become an AAP employee. We will, of course, strive to keep you as busy as possible. AAP is also not able to guarantee an hourly wage prior to the assignment beginning. If you work on a job, and complete the work successfully, you will be paid at the agreed rate.

This employment relationship differs from others because you, AAP, or the client may end your employment with or without notice and with or without reasons. However, if you accept a job with AAP, we do expect you to finish the assignment.

Marketing Strategy

AAP’s target market is both businesses and professional workers. Phase one of the marketing plan will target the University of Oregon, the technology industry, and the top 500 businesses in Eugene through networking and cold calling. Phase two will target small businesses with less than five employees because smaller businesses may not have the in-house capability to locate, evaluate, and hire potential professional contingent workers through a small PR campaign.

7.1 Businesses

We began marketing the businesses through several personnel surveys. The University of Oregon Alumni Association, University of Oregon Foundation, and University of Oregon Human Resources Department, as well as Symantec’s Human Resources director were approached for information regarding their need for professional temporary and permanent workers. These initial interviewees have all (with the exception of U of O HR Dept) become clients within the first year of business. After these personnel surveys were complete, we adjusted our recruitment of professional workers to meet the demand.

Another tactic was joining multiple business groups. AAP became a member of the Eugene Chamber of Commerce and attends the weekly greeters meetings; the Women’s Business Network and attends the monthly meetings; the Professional Women’s Organization and attend the monthly meetings; as well as the City Club, keeping a pulse on what is happening in the community, attending as the proprietor sees fit.

The next approach is face-to-face cold calls. The tools for these calls are simple-a business card and a brochure. The information collected during the cold call is vital: how many employees does the business have; in what areas have they experienced a need for professional contingent employees; and who is the appropriate contact.

7.2 Professional Workers

Our beginning point in marketing to workers was approximately 30 personnel surveys to professional contingent workers, building the foundation of our database.  AAP intends to recruit workers through advertising in the newspaper and appropriate trade magazines, trade shows, the University of Oregon career center, and by referral. We have found that each division within the company requires a different approach for recruitment. We try not to depend on newspaper advertising as we find the results are moderate. Results are far better with the employment department for some areas, with the U of O for others, and also through a series of developed contacts for the other divisions.

7.2.1 Trust

In order to build trust with both businesses and employees AAP will follow through as promised. We will treat each business, employee, and ourselves, with integrity. AAP will communicate clearly, asking businesses to specify the needs for follow-up service during the time that they employ our contingent worker. We will work with employees to assure that they have a clear understanding of what AAP offers and what we expect of them.

7.3 Supporting Research

“A fading model of employment in the United States envisions a business enterprise with full-time employees who can expect to keep their jobs and perhaps advance so long as they perform satisfactorily and the business continues. Changing labor market conditions threaten the concept of full-time permanent employment. As reported by the Conference Board in September 1995, contingent workers account for at least 10 percent of the workforce at 21 percent of the companies surveyed, or almost double the 12 percent of respondents with that number in 1990. Writing in the Monthly Labor Review in March 1989, Belous estimated that contingent workers constitutes 24 to 29 percent of the labor force in the United States. In August 1995, however, the U.S. Bureau of Labor Statistics (BLS) estimated the size of the contingent labor force at 2 to 5 percent of the total workforce. However, BLS did not count long-term part-time employees, who constitute 90 percent of part-time workers.”       — Society for Human Resource Management, The Contingent Worker: A Human Resource Perspective, by W. Gilmore McKie & Laurence Lipset taken from Chapter 1, What Is a Contingent Worker?

AAP is a service company providing businesses with customized personnel solutions by connecting them with the professional contingent work force. Research suggests that 2000 is an opportune time to be in the Eugene market with this service. Even with all of the evidence that contingent work is the wave of the present, and of the future, the niche of placing contingent workers who are paid $12.50 to $40 per hour is untapped in the Eugene area. However, a few companies place high-end contingent workers in the Portland area.

There are many reasons why businesses are turning to contingent workers. The Economic Policy Institute’s article “ Contingent Work ” by Polly Callaghan and Heidi Harmann explains that:

“Growth in involuntary part-time employment is causing total part-time employment to grow faster than total employment. Another indication of the shift toward part-time workers: hours for part-time workers are growing faster than hours for full-time workers. Temporary employment has grown three times faster than overall employment and temporary workers are being used for more hours. Contingent employment is growing faster than overall employment. Part-timers are disproportionately women, younger, or older workers. There has been a shift away from manufacturing toward trade and services. These structural changes help explain the growth in part-time employment.”

Because of the changing nature of jobs themselves, AAP’s services are desirable to employers of all sizes. Unlike five or ten years ago, many positions are so diversified, or specialized, that it is not financially feasible for an employer to hire a person to fill one position, requiring several areas of expertise. This is not financially wise for the business because of the pay range required to recruit and hire such a talented person (especially in areas such as graphics, design, etc.). The cost of payroll, taxes, benefits, and other miscellaneous staff required to run employees add to the burden of a downsized staff. Contacting AAP and using a professional contingent worker for each portion of a position as needed will solve this dilemma. Currently most businesses locate needed “qualified” workers by word of mouth. With one phone call, e-mail, or connection with our Web page, AAP makes the task easy.

In addition, Oregon’s economy is expected to continue growing, and employment, total personal and per capita income, and population growth rates are expected to exceed the national average (according to the 1997-98 Oregon Blue Book). Although Oregon’s economy is among the best there is an obvious group of contingent workers available to build an employee labor pool. The company draws from a labor pool of qualified contingent workers which consists of people who work at home, retirees, others who wish to work part-time. According to the Oregon University System, approximately 33% of bachelor’s degree graduates will be unable to find jobs in Oregon each year. So, recent college graduates are also a part of AAP’s labor pool.

Research shows that a large percentage of workers who tend to work more than one job are well-educated individuals who have a higher degree of education. According to Oregon Employment Department’s Occupational Outlook Quarterly , Spring 1997, 9.4% have Ph.D.’s; 6.5% a Professional degree; 9.1% a Master’s degree; 7.9% a Bachelor’s degree; 7.9% an Associate degree; and the remaining 15.8% lesser education. According to a Personnel Journal article “ Contingent Staffing Requires Serious Strategy ,” April 1995, there are also many retirees that enjoy doing contingent work.

Financial Plan investor-ready personnel plan .">

The following sections contain the financial information for All About People. Tables show annual projections for three years. Charts show first year monthly figures.  First year monthly tables are included in the appendix.

8.1 Important Assumptions

The financials of this plan are predicated on the following table of assumptions.

8.2 Projected Profit and Loss

Profit and Loss figures are projected in this table.

8.3 Projected Cash Flow

Our cash flow estimates are shown in the chart and table below. The owner expects to invest further amounts in the business over the next two years to finance continued growth.

8.4 Projected Balance Sheet

Three year annual balance sheets estimates appear below.

8.5 Business Ratios

The table below presents important business ratios from the help supply services industry, as determined by the Standard Industry Classification (SIC) Index code 7363, Help Supply Services.

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How to build a recruitment plan, step-by-step

• Recruitment Strategy

Job reqs are boom or bust, so you’re either scrambling to cover everything or worried about proving your team’s value. Every hiring manager has different expectations on compensation and time to hire, and when they change their mind, you always feel like the last to know.

To break the cycle, what you need is a robust recruitment planning process. A full recruitment plan should include an agreed-upon workforce plan, hiring approach, and marketing strategy. If you don’t have time for the full process, you can also do a quick-and-lite version if needed, though we recommend going through all the steps eventually.

A proactive recruitment plan is the first step to becoming a true strategic partner in the organization. You can get ahead of hiring manager requests, set clear expectations, and demonstrate how critical talent is for achieving the broader goals of the business.

We’ve asked our own recruitment team, as well as experienced recruiters from a range of industries, how they do recruitment planning. Here’s their step-by-step guide, along with the real templates they use every day as part of their recruitment strategy. 

Get your free recruitment planning template

Step 1: assess the situation, collect the headcount plan.

Ask each team to share the roles they plan to open this year, and how each role supports their team’s annual goals. For example, this can help you understand which roles must be hired by a certain date, and which roles are more flexible.

You need to understand what the company is trying to accomplish, how that rolls down to [each] department, and then how they see all these hires contributing to that. Mike Bradshaw, PHR Head of Talent Acquisition, Pinpoint

Review internal and external materials

Start by auditing your core metrics. Check internal reports and your ATS’s reporting for core hiring metrics, including:

• Time to hire
• Time to fill
• Average time in each interview stage

Candidate attraction

• Hires by source
• Candidates by source
• Offer acceptance rates
• Cost per hire
• Actual vs. budget
• Net Promoter Score
• Performance after hire
• Retention rates
• Candidates by demographic groups (race, gender, age, disability, veteran status, etc.)
• Hires by demographic groups
• Conversion rates on specific jobs by demographic groups

Then move on to qualitative materials, such as:

• Feedback from candidates (surveys, Glassdoor reviews, coffees with new hires)
• Feedback from hiring managers and leaders (surveys, performance reviews)
• Internal notes on what has and hasn’t worked before

And take a look at your current candidate experience, including:

• Careers site
• Job descriptions
• Communications sent to candidates

Ask for feedback

Have an open-ended conversation with your stakeholders about how they think hiring is going. Consider requesting feedback from:

• Recent hires
• Hiring managers
• Department leaders
• HR and recruiters 

Where do they see untapped potential? Where do they want to see improvements? What attracted them to the company and what was their candidate experience like?

Identify opportunities

As you review all this information, look for signs of issues and potential opportunities. It’s also helpful to write down your baseline in each area so you can track improvements over time. 

Typically, the opportunities you find will fall across three areas: Talent sourcing, employer brand, or new hire onboarding.

Finding talent: Are there untapped opportunities?

• Channels that work and don’t work, untested networks or tactics
• Channels that are delivering volume but aren’t delivering quality
• Channels that have delivered quality, but aren’t getting the attention they deserve

Branding: Are you selling your company?

• Is your employee value proposition (EVP) strong? How can it be improved?
• Is your messaging and branding cohesive across your careers site , branded emails , and job postings? 
• Is your EVP included in each job post?
• What are candidates saying about you in candidate surveys and review sites like Glassdoor?

Onboarding: What happens after a candidate accepts your offer?

• Are systems in place to give HR what they need to set up new hires for success?
• Is your onboarding process streamlined? 
• What’s the feedback from new hires and hiring managers about the onboarding process?

Step 2: Develop the headcount plan

Now that you have context, data, and feedback on previous hires, you can start planning for the future. The more an organization invests time into these exercises, the easier and more likely it will be to meet recruiting goals on time and within budget. 

Understand team goals and priorities at a high level

Organizational goals are driven by your employees. Meet with senior leadership and department heads to discuss company goals for the year. Is this a year of growth, or efficiency? Are there certain departments or regions we want to develop? Answering these questions will help your team to be aligned with leadership on the hiring mission and messaging. 

Design dream staff plans—then prioritize

Give department heads the opportunity to design their ideal team to reach that year’s goals, budget notwithstanding. This will grant you greater visibility into their vision for the department, and what skills they want on the team. 

Then, help department heads refine each job description and prioritize each role, based on actual needs and realistic expectations. Some roles may be less vital this year, or could be solved without a full-time hire. In these conversations, you can help shape the plan for each department, manage expectations around hiring, and avoid frustration later on. 

Get on the same page about levels

Internal alignment on levels ensures your hiring plan is both competitive and equitable. In a competitive labor market where remote work opens up more opportunities for employees, it is even more important to offer the right rate to hire the right person at the right level. 

At the same time, you want to avoid overpaying or overpromising. Not only will this impact your budget, but it could contribute to internal equity issues, which disproportionately affect women and people of color . 

Outline what is required at each level and define salary bands to mitigate the risk of some employees being unfairly valued. If it becomes harder to hire people at the right level because of pay, then it may be time to reassess trends in the market and adjust compensation levels accordingly.

Tip: Salary transparency attracts quality candidates. On Pinpoint, companies that include salaries in their job descriptions move 15% more applicants to the interview stage

Depending on the size of your organization, there are two ways to approach leveling: 

• Uniform leveling: Everyone across the company follows the same track (associate, manager, director, etc.)
• Functional leveling: Each department has a specialized and unique track. For example, the marketing team may have associates, managers, directors, etc., while the engineering team has engineer Is, engineer IIs, staff engineers, senior staff engineers, etc. 

Determine what makes sense for your organization based on your size and complexity. If developing levels from scratch, the process may take upwards of 9 months, but it will give your whole organization greater clarity.

Plan for backfills and promotions

In addition to new hires, you’ll also need to plan for people who are leaving their roles to minimize the impact of losing skills or capacity on the team. To anticipate backfills, consider past year attrition and industry benchmarks along with current economic factors (growth in the sector, recession, etc.). 

Then, look at your current team to understand who is at risk of leaving their role due to performance, attrition, or promotion. Meet with managers to understand who is on track to be promoted and when so you can plan for their backfill. Be conservative with your budget and resourcing plans so you aren’t surprised when the needs arise. 

Set realistic and fair budgets

With defined level expectations and a conservative hiring plan, it will be easier to set budgets for new hire compensation. To stay on top of industry trends and remain competitive, we recommend these resources:

• Comprehensive.io

Include a budget for the resourcing you will need to reach hiring goals. It can be difficult to anticipate how challenging it will be to hire certain roles, and your talent team may be impacted by attrition as well. It’s possible you will need to increase the capacity of your talent team with new hires or external support from contract recruiters, recruitment agencies, or recruitment process outsourcing provider (RPO).

Any budget proposal will inevitably result in pushback. By working through these steps, your plan should already be aligned with company priorities, but you can make your case even stronger by:

• Demonstrating past recruitment cost per hire and recruiting budgets as a reference, and reiterating how the organization wants to improve this year
• Leveraging leaders who are most invested in making good, fast hires to advocate for the budget
• Using research (benchmarks and models) to illustrate estimated return on investment of those hires for the company 

An iterative approach

A workforce plan will set you up for success, but won’t be set in stone. Shifting priorities, feedback from hiring managers and candidates, and macroeconomic factors will alter your plan over time. Regularly report on data, solicit feedback from stakeholders, and realign on goals to stay on top of these changes. How often you should check in on this plan will depend on your team size and existing processes, but here is an ideal cadence: 

• Weekly: Meet with hiring managers while you have active roles open
• Monthly: Meet with department heads if you are hiring for their teams
• Quarterly: Meet with all department heads to review goals, along with potential backfills and promotions

Step 3: Set realistic timelines

Manage expectations for your team and increase the likelihood of hiring people on schedule by setting estimated timelines. Outline the process for hiring managers and any other stakeholders to ensure they know what is required of them, like submitting requisitions in a timely fashion and allocating time in their schedules for interviews. When recruiters and hiring managers know what actions they need to take and when, your team will be able to respond quickly when strong applications come in. 

To set timelines, refer to historical hiring data along with industry benchmarks . Keep in mind that other economic factors may impact timelines. For example, post COVID-19 and the Great Resignation, more people have reevaluated their priorities and found that they could find better options that fit their values , meaning employers have had to act fast to land top talent. 

For hiring managers, the wait always feels long. Be upfront and provide a detailed timeline so they can see what is involved in the hiring process and feel assured that work is being done.

Example timeline from the Pinpoint Recruiting Team:

• Day 1: Job is posted
• Gather initial results from job posts and adjust accordingly (title, salary, location, etc.)
• Fine tune alignment on required skills and background with real world profiles
• Ramp up sourcing and screening
• Initial screening conversations with 5-10 candidates per week
• Hiring manager interviews with 3-5 qualified candidates per week
• Continue to fine tune alignment on job post and target profile
• Continue to source as needed to meet benchmarks for qualified candidates
• At Pinpoint, most roles can be filled in 60 days or less (time to accepted offer). Executive (Director and above), technical, or highly specialized roles could take up to 90 days to get to an accepted offer.

At Pinpoint, we dedicate a section of our internal communication tool to share documentation on the recruitment strategy and approach so the whole team has visibility. We also share reports from our ATS to keep hiring managers and senior leaders up-to-date on the status of open roles. 

If you still receive pushback, explain the value of having recruiters conduct a thorough, high-quality screen. With more time to vet applications, recruiters can protect hiring managers’ time and only forward the best candidates. If hiring managers become the bottlenecks, here are tips for staying on pace without adding more work to their plates:

• Ask hiring managers to share a sample of CVs or LinkedIn profiles that reflect the ideal candidate and align on what “great” looks like 
• Reserve interview blocks on interviewer calendars in advance 
• Bring in additional interviewers for various parts of the recruitment process
• Utilize automatic scheduling in your ATS to allow for one-click booking
• Align on the priority of roles to expedite those that are most immediately needed

Step 4: Launch the search

Search kickoffs are about identifying what kind of candidate you would like to hire, how you’ll get their attention, and how you’ll keep the search on track. 

Start by getting detailed information about what the hiring manager actually wants and needs via a Requisition form. It’s most helpful if they share this in advance so you can review it before the first conversation with them. You can then verify and expand upon this information when you meet.

While it can be tempting to publish open roles as quickly as possible, it’s worth investing time to customize job postings so they communicate your Employee Value Proposition and attract the right talent . This will allow you to bring in qualified, interested candidates more quickly. 

This also applies to marketing the role—collaborate with the hiring manager to think beyond your typical go-to job boards and identify if there’s anything new or different you can try for this particular search. 

Schedule an initial kickoff meeting with the hiring manager to establish your processes for working together. Identify a day and time to meet each week to check in on the search. Confirm the interview process early on so that everyone knows what to expect and this information can be shared with candidates, ideally in the job posting. 

Step 5: Coordinate the recruitment process

Once the search has started, recruiters will be overseeing a lot, including hiring managers. For them, hiring is essential, but it amounts to just a small percentage of their day. An ATS should make it easier for recruiters to keep the process moving without adding excessive work for hiring managers. Here’s advice from some of our customers on how they’ve been able to increase efficiency up to 70%, in part by collaborating better with hiring managers:

Hiring manager portals

The New York Public Library has about 400 managers who are involved with hiring, in addition to their many other responsibilities. The NYPL team set up a streamlined hiring manager view that made it easy for their team to comment, tag, rate, and share feedback on candidates all within Pinpoint. 

Hiring managers now have greater visibility and a more active role in the process, resulting in greater outcomes for everyone.

It’s really allowed us to coach our hiring managers to be better at creating a great experience for candidates. Craig Senecal Senior Director of Employee Experience, NYPL

Interview scheduling

Franklin Electric hires across a complex and international organization. Balancing people’s schedules and time zones can be a huge challenge. For them, the best solution was to find an ATS with automated interview scheduling . Hiring managers are thrilled to have the access and functionality to fill roles faster, without having to wait on HR.

It’s been a game-changer in terms of the impact and how easy it is. Amanda Hecht Corporate HR Manager, Franklin Electric

Icario is always looking for more data behind their hiring decisions, especially to keep track of their diversity and inclusion goals. After implementing Pinpoint, they began using candidate scorecards to standardize the feedback process and make more informed decisions. If your ATS doesn’t have built-in scorecard functionality, you can use this manual score sheet template .

It’s been really cool to see the type of metrics that we get, or that we can even get metrics in the first place! Rachel Todd Senior Talent Acquisition Specialist, Icario

Step 6: Report on progress

To track team goals, you’ll want to get a quick snapshot every week (or more likely everyday) of whether your search is on or off track. Your ATS should be your go-to source for data, with reports and dashboards that allow you to calculate key metrics. 

In some systems, you may need to create or download a report to get this information. If all else fails, you can also manually track this data outside your ATS (e.g. Google Sheets). 

Top 5 metrics to track during a search:

• # Days Open
• Average Number of Daily Applications
• # Candidates in Each Stage
• # Candidates Who Reached Each Stage (aka Historical Activity)
• Conversion Rates (aka Ratios)

These daily or weekly numbers are most useful when compared against benchmarks. You can establish benchmarks based on your own organization’s historical data or public information about the performance of organizations similar to yours. These benchmarks will vary based on industry, company brand recognition, company size, location, level of specialization, management level, and recruiter experience. 

Example: Benchmarks for Days Open

• By 21 days open, should be hitting goals for weekly candidates sourced, screened, and interviewed
• By 45 days open (for non-technical roles), should have 2-4 strong candidates in final stages
• By 60 days open (for technical roles), should have 2-4 strong candidates in final stages

Example: Benchmarks for Candidates in Each Stage

• 25-50 candidates receiving messages from sourcing outreach per week
• 5-10 candidates interviewing with the recruiter per week
• 3-5 candidates interviewing with the hiring manager per week

If you find yourself struggling to meet benchmarks as the search goes along, continue to revisit and ask questions about your sourcing and marketing plans. 

• Do you need to try new channels or new strategies to reach more candidates with the target profile?
• Has the target profile evolved?
• Are there enough people who fit your target profile to realistically fill the job in a reasonable amount of time? (E.g. if you’re looking for someone with niche technical skills within close proximity to a physical office, there may simply not be enough people in that target profile to find someone without providing relocation.)
• Should you try different messaging in outreach to candidates or in the job posting?
• Are you and the hiring manager both clear and aligned on what good and great candidates look like? 

Step 7: Improve year-over-year

The only constant in recruiting is change. Once you’ve devised your plan, be prepared to return to it repeatedly, iterating and improving on your recruitment strategy as you learn. 

With a hiring tracker and reports showing key metrics, your team will be more aware of what is working and can pivot quickly if needed. When you embed reporting into recruitment, your team will be able to see the forest through the trees and have more control over the process. 

And it’s never too late to start. Even if you are beginning this process mid-year, by the time you are planning for the next fiscal year, you will have more documented information to drive decision-making. 

By working directly with senior leadership, department heads, and hiring managers, you will also have greater visibility of the organization and more advocates on your side. With each subsequent year, you will be able to improve efficiency, collaboration, and the candidate experience. 

A final word of advice

As you’re going through the process, “ask a ton of questions and be selfish with your time,” says our own Head of Talent, Mike Bradshaw. When he took over the role—as the company’s first dedicated talent leader—he used a recruitment plan similar to the one outlined here to understand and prepare for upcoming hiring needs. 

Every one of us that's involved in recruitment—from leadership all the way down to individualized hiring managers—has improved the way that we think about talent as a result. Tom Hacquoil CEO Pinpoint

To get that kind of trust from the leadership team, don’t worry about asking a silly question; just focus on making sure you get all the information you need.

“Some people are sort of timid about asking questions, or asking them again, or asking for more time,” says Mike. It’s natural to want to look confident and autonomous, especially if you’re taking over a new role. 

“But then you end up making a lot of assumptions, and you might start running with something and find it doesn’t work out, and then you have to take a step back,” warns Mike. “Ask all the tough questions. Really try to understand what’s going on, good or bad.”

Further reading

Inbound recruiting vs. outbound recruiting, programmatic recruitment advertising: a recruiter’s guide.

Ready to get started?

How to start a recruitment business

Written and reviewed by:

Our independent reviews are funded in part by affiliate commissions, at no extra cost to our readers.

Today’s recruitment companies are very busy. Post-COVID, the so-called ‘great resignation’ has taken place, with employees up and down the country searching for better jobs made available thanks to the advent of remote working.

Companies are now grappling with a cross-sector labour shortage, while immigration issues caused by Brexit have only aggravated the situation. While this is undeniably a hard environment for recruitment companies to deliver in, the medium to long-term prospects for the industry look very different.

As a recession looms, job seekers are likely to lose confidence in switching roles. Soon, the risk of saying goodbye to a stable salary during a cost of living crisis will outweigh the benefits created by finding a new employer.

Given the mixed bag of opportunities available, any recruitment startup needs to stay on top of the market and ensure they are setting up a business that meets the exacting demands of clients. Below, we’ll get you fully up-to-date on how to set up recruitment firm. We’ll through the type of experience and level of expertise required, to the kind of fees and profits you can look forward to.

There’s a lot of planning that needs to go into launching a successful recruitment agency. Thankfully, one area which needn’t cause undue stress is creating a website to promote your business. Thanks to modern templates like the one below , you can create one of your own in under an hour.

At Startups.co.uk, we test and rate website builder tools, and we’ve identified Wix as one of the best you can choose for creating a business site. Wix even has a selection of  custom website templates designed specifically for recruitment agencies  – you simply drop your own company information, wording and preferred imagery into your chosen template. Better still, it’s completely  free to try  for yourself.

Create a recruitment business plan

Recruitment pricing structure, find your niche, recruitment startup costs, financing your recruitment business, recruitment laws and regulations, final thoughts.

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have helpful resources for helping new businesses get off the ground – you can use the tool below to get started today.

What Does Your Business Need Help With?

As with any business, don’t do anything before you’ve created your recruitment business plan. Our easy-to-use template will take you through each step of the process, but you essentially need to cover the following points:

• About you – Discuss what makes you a good fit to run a recruitment business, and why you want to run one. Discuss your experience, contacts, qualifications, and personal qualities, and make sure to sell yourself
• About your business – There are a wide range of recruitment types, so you’ll need to make clear exactly what your recruitment business aims to do. Which sectors do you want to work in? Do you want to focus on full-time or part-time employees? Is there a particular demographic you feel an affinity with and can target? You’ll also need to explain staffing, and crucially, how you plan to finance your business.
• Market research – Here you can go into more detail on your target market and competitors – how are you going to stand out and attract business? Identify a geographic area that you’ll initially focus on – even if you don’t have an office to start with, you’ll likely need to meet candidates and clients in person, so choose the location for your business carefully.
• Costs and business forecast – Here, you’ll need to outline all the costs your business might incur – everything from website development to office space and business insurance. You’ll also need to give a realistic business forecast that explains how much profit you’ll make in Year 1, Year, 2, Year 3 etc.

While it may not be quite as satisfying as building your own recruitment business from scratch, opening a recruitment franchise has several key advantages. You’ll be able to use an established brand, get expert advice from experienced recruiters, and may also find it easier to get finance than if you were starting a completely new recruitment business.

The total investment varies, but Travail Employment Group , a leading company in this area, suggests a total of £30,000 will be required – including an initial franchise fee of £12,000.

This might be a particularly suitable role for those with little recruiting experience, due to the much greater level of support offered.

Need help staying organised?

Starting a recruitment business will take a number of steps and it’s important to keep everything tracked.

Project management tools are a great way to keep everything moving in the right direction – you can assign tasks, track progress and create projects that everyone can chip into.

Get expert help finding the right project management software for your business .

Expert insight: John Lennon, THRYVE

John Lennon (no, not that one) built innovative tech recruiter THRYVE from scratch to £4mn turnover and told Startups that, when starting out, you should think about all the realities of owning your business rather than just focusing on how you’ll go about getting clients and attracting candidates:

“If I could go back in time, my first hires would be an operations manager and a marketing manager. When you first set up a recruitment business you are a salesperson, a marketer, an accountant, bookkeeper, administrative expert, tax expert, events coordinator and so much more.

“It was only when I started THRYVE that I realised how little I knew about how to run a business. This is why so many recruitment companies fail – most recruitment business owners are great recruiters, but struggle with the transition to becoming a business owner.

“Make sure you educate yourself on basic business principles, understand how to read a profit and loss statement, understand how to forecast, take advice, get mentors and surround yourself with positive people in your space who can help you.

“And, most importantly, be really mindful of cash flow and your outgoings.

“After all, your revenue figures mean nothing if your profit levels aren’t where you need them to be.”

One of the most important decisions you’ll make is how to price your services. This should be a crucial part of your business plan.

The fee you charge will vary depending on whether you are recruiting permanent or temporary staff.

Permanent employees

Rates vary, but research by recruitment training company Social Talent indicates that you can expect to charge a one-off fee of 15-20% of the role’s annual salary for most roles, with this rising to 25% for roles that are particularly difficult to fill. This matches the view of Tim King of IT recruitment specialist Matchking , who charges his clients 20-25% of the employee’s annual salary.

This assumes that you operate on a contingency basis – in other words, that you’re only paid once the job has been filled by a candidate you put forward. In this case, you’ll often be competing with other agencies.

The other option is retained recruitment , where you are exclusively assigned to find candidates for a role. This usually involves a more in-depth process, and is often associated with more senior roles. Consequently, you are able to charge more – 30% is common, while experienced professionals in specialist niches charge up to 50%.

You’ll also be expected to factor a rebate into your fees, where you return part of the fee if the hired candidate leaves the job after a certain period of time. Again, the period and percentage returned varies between agencies.

This variation in fees reflects the fact that recruitment can involve many different processes, from writing job ads to interviewing candidates, and even conducting reference checks. As a recruiter, how many of these tasks you take on will determine the fee you charge.

When starting out, you may also want to be flexible with your fees in order to build long-term commercial relationships.

Temporary employees

Things are a little more complicated when you’re hiring temporary employees.

You’ll need to factor in the following:

• The cost of the worker
• Holiday pay
• National Insurance
• Your desired margin

These costs are initially paid by the agency, before being reclaimed from the client.

The rate may also vary depending on whether the position is fixed-term or paid by the day.

The same Social Talent research found that for a fixed six-month post, agencies would charge 12-15% of the equivalent annual salary ( not the six month period the employee was being hired for).

For a temp position that paid £300 a day, agencies would charge around 15%, so approximately £45 per day in this case.

For both permanent and temporary workers, some agencies are also shifting to a flat fee structure, as this can make them more attractive to clients.

As a newly established recruiting agency, you’re unlikely to survive unless you develop a specialist area. Trying to compete in the general recruitment space is incredibly difficult given the established brands and high visibility of the major players.

Many of the most successful smaller scale recruitment agencies have prospered by sticking to a specialist area they know inside out.

Adam Bolton gave great insight into how he started ABrecruit from scratch on the Undercover Recruiter blog. What really comes across is how he always knew he wanted to focus on .net development, and how he leveraged his experience in this area. He knew the field, knew the people, and knew how to appeal to both companies and candidates – a plan that resulted in a thriving company which has now been going for seven years.

A look at the Startups 100 reveals similar success stories – JHP Recruitment has prospered by focusing on veterinary recruitment, Debut has made waves with its clever platform for graduate recruitment, and The Dots is providing creative professionals with a new way to be seen and hired.

If you can, follow their lead.

Expert insight: James Lloyd-Townshend, Frank Recruitment Group

The chairman and CEO of technology recruitment company Frank Recruitment Group , James Lloyd-Townshend has over 23 years of experience in the recruitment industry. Speaking to Startups, he said that while it may feel like you’re turning down chances to make money, choosing a specialist area and sticking to it is the key to long-term success:

“When starting a recruitment business, you need to understand that not every opportunity is an opportunity.

“This is one of the most common pitfalls, especially in this industry. It’s easy to think that, for instance, that any sector is a potential area to operate within.

“However, that can come at the expense of having the specialist knowledge that can actually be of value to your customers.

“So for us, knowing our niche and focusing just on that, allowed us to provide a level of service that a lot of our competitors have struggled to match and has allowed us to stay out in front.”

Like any other startup, new recruitment businesses can prosper by doing what their larger competitors can’t (or won’t) do.

Being agile is the key. Adam Bolton of ABrecruit made the decision early on to work from 8am to 9pm on weekdays and all day on Saturday – a punishing schedule that enabled him to talk to candidates outside work hours, and have relaxed conversations about what they were really looking for. It’s a great example of the sort of creative thinking you’ll need to employ to make your mark in the early days.

Depending on what sort of candidates you’re targeting, you may also need to consider tech-driven solutions. Already, the job search has largely shifted from laptop to mobile, and the likes of Tempo are trying to reinvent the recruitment process by using AI, video, and rich CVs that include ratings and reviews. All this has the potential to hugely streamline the recruitment process – Tempo boasts that its fastest hire was made in just 27 minutes.

Further along in the process, the traditional supremacy of the interview is also under threat – with alternative and complementary solutions including soft skills assessments, job auditions, and even virtual reality.

As a recruitment startup, keeping on top of these trends is key. While you may not have the established reputations and brand awareness of the big boys, you’re ideally placed to innovate and operate more efficiently.

Expert insight – Malcolm Burenstam Linder, Alva Labs

Groundbreaking recruitment startup Alva Labs is taking aim at one of the central pillars of the common recruitment process – CVs. Instead it wants to use logic and personality tests to remove human bias from the hiring process and quickly find candidates that match the requirements of the role and the culture of the hiring company. This innovative approach has already earned Alva major clients like Arla and Deloitte, and co-founder and CEO Malcolm Burenstam Linder told Startups that the impetus for the company came from seeing traditional recruitment processes fail over and over again in his previous jobs:

“I previously worked for a flourishing private equity company and a rapidly growing ecommerce company, both of which had big problems with staff turnover – hiring managers were in a constant battle with the revolving door and staff weren’t staying because they simply weren’t the right people for the job.

“At both companies, I couldn’t understand how we could be so dependent on data and analytics for almost every decision, but when it came to recruiting new team members, we were relying on gut feeling and personal preference. This is when the extent of the recruitment problem dawned on me.

“By failing to talk and think about talent in an objective manner, we let bias creep into the process and demolish our chances of hiring the best people.

“And by letting our own experiences drive our definition of what ‘great’ looks like in a candidate, we directly stunted company growth.

“Eventually, I found myself waving goodbye to the stability of private equity to kickstart my own recruitment business, Alva Labs, with a vision of improving the quality, efficiency and inclusivity of the job market worldwide.”

There are only two things you definitely need to start a recruitment business – a phone and an internet connection. You can even use your personal mobile at the outset, although a dedicated business handset could cost you as little as £6 a month – check out our guide to the best business mobile phone plans for more info.

However, to really spread your wings and fly, you’ll want to invest in the following:

If you’re a recruitment agency, your website is really, really important – it’s the public face of your business, and it’s how candidates and companies will judge you.

There are a huge range of options available, as detailed in our guide to small business website costs . If you want to take the DIY approach, companies like Wix and Squarespace offer packages for around £10 a month, while a professional web design company should charge you around £1,000.

Make sure your site is set up for mobile – a recent report from recruitment platform Glassdoor found that 58% of Glassdoor users are looking for jobs on their mobiles .

You can find software that promises to help you with practically every aspect of your business, but two areas are really worth looking into for recruitment businesses – CRM software and accounting software.

• CRM software – CRM stands for Customer Relationship Management, but as a recruiter, you should think of it as Candidate Relationship Management. Numerous pieces of bespoke software are available to help you easily keep track of who’s applied for which job, and sort candidates according to skills and experience.
• Accounting software – Not many people (apart from accountants) love the financial side of running a business – running payroll and putting together tax returns can quickly make you question the wisdom of getting set up on your own. However, while you’re unlikely to be able to afford an accountant in the early days, investing in accounting software that lets you track expenses and payments could really pay dividends. You can make sure you stay on top of your finances, and don’t have any sleepless nights when it comes to filling in your tax return.

Office space

You might start off in your bedroom, but sooner or later, you’ll want to find a proper space where you can meet candidates and run your business. A co-working space is a great first step, getting you out of your living room but saving you the responsibility of single-handedly renting a space. You can find out more in our in-depth guide to the costs of co-working , but expect to pay anything between £100 and £600 a month in London depending on location and facilities. Outside the capital, prices fall dramatically – with a co-working space in Sheffield, for example, costing approximately £200 a month.

As a recruitment business, you shouldn’t need much in the way of equipment. The days of fax machines are long gone, and contracts can be electronically signed using services like Docusign . Make sure you have a good phone and internet connection, as well as a selection of private spaces where you can meet candidates.

Location is also important: you’ll want to ensure you’re based somewhere that’s easy for candidates to get to, and also consider whether there’s a part of town which is a particular hub for the industry that you specialise in.

There’s no getting around this one – as soon as you employ your first member of staff, you’ll need employers’ liability insurance that covers you for claims of up to £5m. It’s also a good idea to consider getting public liability insurance, which would cover you if anything happens to a candidate or client on your premises, while any vehicle used by the business must have a motor insurance policy in place.

Recruitment is commonly associated with two things – high salaries and high turnover.

Let’s tackle salaries first. While this is likely to be your biggest ongoing expense, it’s a bit of a myth that recruiters are always on high salaries. Nationally, PayScale data indicates that the average UK salary for a recruiter is £26,443 – notably below the UK average of £31,772 a year (or £611 a week).

Of course, this masks significant regional variation, with LinkedIn Salary data indicating that the average for a recruiter in London is £35,000 – compared to £27,500 in Manchester, £29,500 in Sheffield, and £29,500 in Leeds. And you’ll likely need to also factor in commission, which averaged £5,000 according to PayScale and £10,000 according to LinkedIn.

In terms of staff turnover/staff churn, there’s no doubt that this is an issue for recruitment businesses, with rates commonly cited that are double or even triple the national average of 15%. The common turnover factors still apply – make sure you’re open to flexible working, and that salaries keep pace with the industry at large – but dealing with rejection is often cited as the most difficult part of working in recruitment.

It might therefore be a good idea to ensure that a system is in place for employees that are struggling. For a startup, this could be as simple as an empathetic senior member of staff that can offer the benefit of their experience. As you grow, investing in dedicated mental health support could really pay dividends.

With a recruitment business, awareness is key. You need everyone to know what you do, and how you go about it – which makes marketing really important. Consider targeted digital and social media marketing campaigns, as well posting on online job boards.

While it can be difficult to know how much to spend, make sure you don’t commit to a campaign before you know it will deliver a solid ROI. Start small, and then scale up if you see positive results.

Project management software

With so many things to juggle, using project management software can make a huge difference to your recruitment business. Easily keep track of everything that needs to be done, and instantly see which tasks are overdue. Some programs can even automate processes completely to significantly improve efficiency.

Given the myriad costs discussed above, making sure you can finance your recruitment business should be one of your first priorities. Given the delay between outlay and financial return, cash flow is a common issue for recruitment agencies.

Alongside trying to secure investment or a business loan, make sure you consider invoice factoring. This is common in recruitment, and is a great way to manage a temporary shortfall – find out more in our guide to invoice factoring fees .

Two finance providers that specialise in the recruitment industry are Sonovate and Quba Solutions.

Sonovate specialises in invoice finance, allowing businesses to borrow against their outstanding invoices in order to free up cash and pay their contractors on time. It has already funded over £500m in invoices to date.

Quba Solutions

Quba Solutions is a contract finance provider that offers finance and back office services to recruitment firms. Its packages allow you to easily generate invoices, chase payments, and ensure that your cash flow remains positive.

Expert insight: Gary Ashworth

Recruitment veteran Gary Ashworth has over 40 years experience in the industry, founded his first recruitment company when he was just 21, and is currently chairman of three different recruitment companies. Speaking to Startups, he stressed the importance of having a coherent financial plan in place:

“If you want to take advantage of running contract or temporary staff as well as charging a fee for making them permanent, then you’ll have to have a line of credit in place to cover their wages, since you might not get paid for 30-60 days or longer.

“You’ll also need a more sophisticated back office to process all of the transactions and that will come at a cost.

“It’s absolutely crucial you get the numbers right – you should be turning 20% of your net fee income into profit .

“If you’re not doing that, then you’re either paying your staff too much or your establishment costs are too high. You don’t want to be a busy fool who works hard but barely makes a profit!”

The main piece of legislation that covers the recruitment industry is the Employment Agencies Act 1973 . If you want to set up a recruitment business, you’ll need to make sure you know this legislation inside out. The REC has a helpful guide, and this infographic nicely summarises the main points.

Source: Agency Central

Alongside members and key figures from the world of recruitment, the REC has also created the REC Code of Professional Practice, which aims to promote consistent standards across the industry. This covers the following 10 areas:

• Respect for Laws
• Respect for honesty and transparency
• Respect for work relationships
• Respect for diversity
• Respect for safety
• Respect for professional knowledge
• Respect for certainty of engagement (ensuring that workers are fully informed of the pay and working conditions for the role they are being employed in)
• Respect for prompt and accurate payment
• Respect for ethical international recruitment
• Respect for confidentiality and privacy

As is the case with any business, starting a recruitment agency is not for the faint hearted – but following the steps laid out above should ensure you avoid some common pitfalls.

Starting off with a good business plan is crucial – one that makes it clear what your business strategy is, has detailed cash flow forecasts, and demonstrates your in-depth knowledge of your target market. If you’re starting out with no recruitment experience, then taking on an employment franchise could be a great option – and regardless of whether you’re franchising or going it alone, choosing the right pricing structure is key.

The UK recruitment industry is already a crowded market. Finding your niche is extremely important, as is having an innovative mindset that’s open and ready to implement new recruitment solutions.

With initial costs likely to include a website and marketing, and later steps on the ladder entailing expenses like office space and CRM systems, having the right finance in place should be a cornerstone of your business strategy. Finally, make sure you have an in-depth knowledge of the UK’s employment agency legislation to ensure you’re operating legally.

Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews.

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Home » Blog » Where to start with a recruitment business plan

Where to start with a recruitment business plan

Rhys jones written by rhys jones managing director – davidson gray.

Rhys sold out of his previous recruitment businesses in 2012 to focus solely on helping recruiters set up and build recruitment businesses. Follow Rhys on LinkedIn or contact him direct  here for help with your start-up recruitment business or for coaching to grow an existing one.

You’ll be pleased to hear that in my experience a recruitment agency start up business plan need only contain a few essentials and really isn’t rocket science. You only need a basic plan to start, well thought through definitely, but not War and Peace.

A start up recruitment business plan doesn’t need to be super sophisticated. However what you do need is a well thought through plan so you can build solid foundations for growth, remove as much risk as possible and allow you, once you go live, to concentrate on the exciting bit, BILLING, rather than working things out as you go along. The planning now will make the real fun part of making money so much easier with fewer distractions, and allow you to really enjoy being your own boss and owning your own business. So spend that time now, trust me it’s a fabulous investment and you’ll be grateful for it when you make a flying start in your new recruitment agency. 

If you search on the web, you’ll find various contradictory ideas on what a business plan should contain, which can leave you worse-off than when you started, confused on which way is the best way. I hope in this series of blogs I can take some of that confusion away for you. I’ve been lucky enough to have hands on experience of building my first businesses from the ground up. Added to this, I improved my knowledge with additional learning gained at Cranfield Business School, which I applied to those early businesses and the many more recruitment businesses in different sectors I went on to set up, all of which are continuing successful companies. So with this experience, I’d like to think my ideas on recruitment agency business plans are worth considering (sorry if this sounds like I think I’m the Richard Branson of recruitment, it’s not meant to, but think it helps explaining my experience).

The common school of learning on business plans is to use the SWOT analysis, i.e. what will be the planned business’s:

• Opportunities

I don’t disagree that you could add this to your plan, and it’s handy to have in, but this series of blogs look at what I feel are specific and essential to a recruitment business plan (plus the bits you may not know if you’ve never set a business up before). Where to start.

To see if you do have the basics of a business in you, I advise firstly to look at the sales and cash flow forecast. If your business idea doesn’t pass this test, you need not waste your time any further – your business just won’t fly. So let’s start with the engine of the business, money in.

Your Sales Forecast

To allow you to write your cash flow forecast, you’ll need a well thought through sales forecast.

There’s lot to consider here, a lot more than first appears. You can’t just take what you bill now and assume you can simply replicate that without understanding where your current billings come from. So, below are ways to stress test where your current billings actually come from by looking at where you get both your vacancies and candidates.

Candidate Attraction

Needless to say finding good candidates is critical to your placements, so you need to make sure you have thought about where you will get them from. To help understand where you are currently successful, I suggest you look at your last six months’ billings and write next to each candidate placed where that candidate came from. Was it a headhunt call, a referral from previous candidates / clients, was the candidate off the business database, were they from a job board, social media, LinkedIn, Twitter etc? This is a real life study based on you, and how you are currently successful. It’s invaluable to understand what you will be able to easily reproduce when working for yourself e.g. headhunt calls, LinkedIn etc. and parts you may need to make up for e.g. candidates who came from a database search. So this will help you appreciate how easy or not candidate attraction will be for your sales forecast. It will also help get you thinking what you can do to make up for any tools you have now in the workplace but won’t have when you leave. Plus, if it’s job board centric then this is a cost you need to add to your cash flow plan. I’m not going to go into how to improve your candidate attraction here (that will be another blog) but if you’re currently very dependent on the company database, this should ring alarm bells and you need to think ahead and plan how to recruit successfully without it. And try applying these new techniques now whilst you’re still employed to perfect them so you can add their added sales value to your plan with confidence.

Client / Vacancy Attraction

At this stage it’s pertinent that I bring up the potential handicap that your current employment contract’s restrictive covenants may have on your planned client base. The current widely accepted covenant, i.e. what the courts see as ‘fair and reasonable’, is that you can be restricted from trading with any clients you’ve had ‘material dealings with’ over the last twelve months with your current employer, for the next six months once you leave (any more than this is seen as unreasonable).

Now this isn’t to say if it’s in your contract that means you’re definitely frozen out from this potentially lucrative group of businesses, there could be errors elsewhere in your contract that makes this void. So get it legally checked and from a commercial angle if you can. Law isn’t black and white and getting good commercial legal advice is hugely valuable which is why I use Barrister Greg Walsh of  Greg Walsh Law  for my Davidson Gray partner businesses. I see it as that valuable to get good quality advice. But if your current clients are off limits for the first six months, work this into your plan. Next, go back again over the last six months’ placements and mark where your clients/vacancies came from as you’ve done for your candidates. Do the clients come to you for you, or because of who you work for, are they from a PSL you won’t be on, were there any from a mailshot, new business cold call etc?  This will quickly show you where your current vacancies come from so you can write your sales forecast from a true picture of what you can and can’t replicate easily. Plus, if some methods you use now to gain clients are removed or won’t be as effective once you leave, you have time to plan new business development and marketing initiatives to replace this business. And as with the new candidate attraction strategies, see how they work where you are now, but maybe not too much, you don’t want too many new clients your covenants could restrict!

The sales forecast itself

Once you’ve considered the above, you will be able to see more clearly what tools and advantages you currently benefit from where you work. It should now be easier for you to write a realistic sales forecast. I find it helpful to write two sales forecasts, one you feel is realistically achievable and one that you feel is the absolute minimum you’ll achieve. The bare minimum one is important in your cash flow forecast. You don’t want to get five months in and run out of cash, so if you know the bare minimum you’ll achieve, you can see how much of a cash buffer you’ll need. The realistic forecast is the one you plan for with the activity you expect to hit, the KPIs you set yourself etc. Plus this can be your motivator, as you should be earning a lot more on this forecast than you currently are very, very quickly!

So simply start with month one, and take it through to month twelve. You can’t realistically predict year two in a start-up. You will learn a lot midway through year one and you can use this learning for year two’s forecast.

Once you’ve done your sales forecast, you can use this in your cash flow forecast. I will go into this in my next blog where I’ll explain how you can get a very good idea of  how much it will cost to set up a recruitment business , running costs, and net profit month by month.

I hope you’ve found this second blog in the series helpful, and as always if you have any questions, feel free to contact me. You can find me on LinkedIn under my main business name of Davidson Gray.

Interested in working with Rhys to grow your start up?

Rhys not only provides the start-up infrastructure for your new business and all the support services your business will need, he can actually work with you to grow it. Take advantage of as much mentoring and coaching as you would like, plus Rhys considers himself a working partner and will take responsibility for the areas that you’d like him to, perhaps those you have the least passion for e.g. Finance and Digital Marketing. When working together on the business’s growth strategy, much of the effort to deliver it can be delegated to the Davidson Gray team.

Book a chat with Rhys  here.

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A guide to using LinkedIn Recruiter

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What does it take to grow a recruitment business in these uncertain economic times? In this blog, originally published in The Global Recruiter, Rhys looks at what it takes to grow a recruitment business in 2023.

Leadership or management – what’s more important to a growing recruitment business?

Leadership or management – which one’s the more important skill to have when growing your recruitment business? We’ll look at why it’s crucial to have both and when to use them to greatest effect.

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Understanding the Importance of a Business Plan

A well-structured business plan is the cornerstone of success for recruitment agencies. It   serves as a blueprint outlining  your agency’s vision, mission, goals, strategy, and financial projections. 

Here is why it is crucial for the success of a recruitment agency. 

• A well-crafted business plan is a strategic tool that enables recruitment agencies to stay focused on their objectives, create a competitive edge, and ultimately achieve long-term success. 
• Notably, it allows you to identify potential challenges and opportunities, set realistic expectations, and allocate resources efficiently.
• By providing a clear roadmap for growth, a comprehensive business plan helps you navigate the complexities of the recruitment industry and adapt to the ever-changing market conditions.
• It helps you make informed decisions and strategies effectively. 

Leveraging the Workbook for Enhanced Planning

Utilize the Business Plan Workbook to:

• Deepen your understanding of each planning stage with detailed prompts and worksheets.
• Organize your financial data, market research findings, and strategic objectives effectively.
• Access valuable tips and best practices for recruitment agency startups.

By integrating this workbook into your planning process, you gain a valuable tool that enhances your business plan’s quality, making it a robust document that guides your agency towards achieving its goals.

The 7 Stages of Writing a Startup Recruitment Agency Business Plan

Writing a business plan from scratch for your recruitment agency can be challenging. We’ve compiled a comprehensive step-by-step guide to explain the process.

Here are the seven stages involved in putting together this critical document:

• Defining your recruitment agency’s vision and mission
• Identifying your business model and services
• Conducting market research and analysis
• Developing a marketing and sales strategy
• Building your team and infrastructure
• Defining financial projections and funding
• Outlining risk assessment and mitigation strategies

Stage #1: Defining Your Recruitment Agency’s Vision and Mission (3 Steps)

Creating a solid   vision and mission statement  for your start-up recruitment agency business plan is crucial to guiding your business in the right direction.

To do this, follow the below steps:

• Define your purpose.
• Establish your goals.
• Outline your values.

With a trusted partner like Recruiter Startup…

…. costs to start your recruitment desk are minimal compared to starting from scratch

Step #2: Establish your goals.

Set measurable goals to work towards, such as:

• Place 100 candidates in new jobs within the first year.
• Generate £250,000 in revenue by the end of year two.
• Build a network of 500 vetted clients and 1,000 active candidates in the UK.

If you’re putting together a start-up recruitment agency business plan, it’s important to review and revise your goals regularly based on your progress and market conditions. 

Step #1: Define your purpose.

Establish the underlying reason for starting your recruitment agency in the first place. Do you want to help people find meaningful work, support growing businesses, focus on a niche industry, or something else? Whatever the reason, your purpose should align with your values.

For example:

• To help UK technology startups attract top talent.
• To provide job opportunities for disadvantaged groups in local communities.
• To become the go-to agency for healthcare recruitment in the UK.

Step #3: Outline your values.

The values that guide your agency will shape your culture and brand.

Examples include the following:

• Integrity:  We’re honest and transparent and keep our promises.
• Excellence:  We strive to exceed expectations and deliver the highest quality service.
• Diversity:  We believe in providing equal opportunities regardless of gender, ethnicity, or background, in line with the  UK Equality Act 2010 .

Your vision, purpose, goals, and values provide the foundation for your recruitment agency business plan. Refer to them often when making critical decisions to stay on track. 

Stage #2: Identifying Your Business Model and Services

Next, consider which business model suits your needs: focusing on permanent placements, contract staffing, or both.

The services you offer should align with your expertise and target market. For instance, if you have a background in IT, specialising in tech recruitment might be ideal. However, starting with generalist roles could be more suitable if you’re new to the industry.

Developing a comprehensive recruitment agency business plan in the UK (or any other country) can be complex and often impractical for new agency owners. A more efficient alternative is to start your own recruitment desk under Additional Resources’ Recruiter Startup model.

We provide the necessary infrastructure, tools, training, and support to help you launch your agency quickly, enabling you to start matching candidates with jobs and generating revenue immediately. 

Stage #3: Conducting Market Research and Analysis (A 4-Point Checklist)

Performing market research for your recruitment agency is essential for understanding your target market, competitors, and industry trends.

This involves the following activities:

• Surveying businesses in your area
• Researching competitors
• Tracking industry trends
• Analysing data for opportunities

2. Researching Competitors

Investigate what competitors offer and how they operate — research their fees, services, and client attraction strategies. The UK recruitment industry is highly competitive, comprising  over 27,700 agencies . Hence, understanding your competition will help you differentiate your agency.

1. Surveying Businesses in Your Area

Determine hiring needs and budgets by surveying local businesses. As of 2022, the UK had approximately  5.5 million  private sector businesses, providing ample opportunities to explore various industries and niches. 

4. Analysing Data for Opportunities

After gathering data, analyse it to identify opportunities and establish a competitive advantage. Look for unmet needs or new trends to capitalise on.

3. Tracking Industry Trends

Stay updated on trends like remote work, which increased significantly during the COVID-19 pandemic, with   17.4% of the UK workforce   working from home in 2020. Also, monitor the demand for contract staff, as the gig economy has grown in recent years. Adapting to the ever-changing recruitment landscape is vital for long-term success.

Starting a business from scratch can be hectic. As an alternative, consider joining a recruitment franchise like Recruiter Startup. We have an established brand and in-depth industry knowledge, helping you begin your journey with a solid foundation.

Check out our  associates recruitment model  to learn more about how we operate and how much you can earn working from home.

Stage #4: Developing a Marketing and Sales Strategy (5 Tips)

A solid marketing and sales strategy is crucial for building a successful business, recruitment agencies inclusive.

These five tips can help outline a compelling start-up recruitment agency business plan, which is vital if you’re looking to convince investors to fund your enterprise:

• Define your target market.
• Build your online presence.
• Develop a marketing strategy.
• Source great candidates.
• Provide excellent service.

1. Define your target market.

To identify your ideal job-seekers, focus on an initial niche, such as IT professionals, nurses, or teachers. You may go on to specify locations, experience levels, and skills.

For example, you may focus on recruiting in the healthcare niche, a highly viable market — the UK has a high demand for healthcare professionals, with the NHS employing o ver 1.4 million people . Targeting your market makes reaching them more manageable.

2. Build your online presence.

About   61% of job-seekers  in the UK used online job boards to find employment in January 2022 alone.

Take advantage of this viable marketplace by developing a professional website to showcase your agency’s credibility. Optimise for search engines using essential keywords, like “recruitment agency” and your location, e.g., “London.” Create LinkedIn, Facebook, and Twitter profiles for networking with candidates and clients.

Our post on how to start a recruitment agency expounds more on the need to achieve a robust digital profile.

3. Develop a marketing strategy.

An excellent recruitment business plan example outlines how it plans to generate leads.

• Identify the best ways to promote your agency. 
• Consider advertising on job sites like Totaljobs, Reed, CV-Library or in industry publications. Offer discounts and promotions to new clients and attend local networking events to form personal connections. 
• Lastly, regularly email your contact list with job openings and agency updates.

4. Source great candidates.

Post jobs on your website, social media, and platforms frequented by your target candidates. You may also utilise your network to gather referrals but thoroughly screen candidates to ensure the best matches for your clients. 

5. Provide excellent service.

Strive to build lasting relationships with clients and candidates — regularly check in to ensure satisfaction and address any issues promptly. Go above and beyond expectations, such as assisting a new hire’s onboarding process.  Up to 83%   of satisfied clients and candidates will likely refer others and return to your agency, boosting profit margins by 25%.

By following these steps, you’ll be well on your way to developing a successful marketing and sales strategy for your UK recruitment agency. While crafting a comprehensive recruitment agency business plan can be challenging, focusing on the essentials lays a solid foundation for your agency’s growth.

Stage #5: Building Your Team and Infrastructure (A 4-Point Checklist)

Assembling a team of qualified professionals and establishing the necessary infrastructure is crucial when building a recruitment agency, so you must consider it in your recruitment agency business plan . However, this can be challenging and costly, as outlined in our post on recruitment agency startup costs .

Adhering to the following checklist can make your task easier:

• Hiring recruiters
• Administrative support
• Office space
• Technology infrastructure

2. Administrative Support

Your agency needs administrative staff to manage daily operations, such as answering phones, organising schedules, and updating records. An administrative assistant’s average salary in the UK is  £20,664 annually . Any candidate you’re hiring should have strong organisational and communication skills.

1. Hiring Recruiters

Recruiters are the backbone of your agency. Aim to hire experienced recruiters with proven success in your target industry or job function.

In the UK, the average salary for a recruiter is   £31,489 per year , with bonuses and commission potentially increasing earnings. Recruiters must excel in networking, interpersonal, and sales skills to effectively find candidates and maintain client relationships.

3. Office Space

If not operating virtually, secure office space for your team. Consider a location easily accessible for candidates and clients, with room for private offices or cubicles, a reception area, conference rooms, and storage. In the UK, office rental costs vary by location, with London prices ranging from   £50 to £150  per square foot per year.

4. Technology Infrastructure

Invest in a robust technology infrastructure, including the following:

•   Applicant Tracking System (ATS):  Essential for managing candidates. Popular options in the UK include   Bullhorn  and  Firefish .
• Customer Relationship Management (CRM) system:  Vital for tracking clients and placements.  Salesforce  and  HubSpot  are widely used in the UK.
• Fast internet connectivity:  Important for efficient operations.
• Enterprise-level security:  Crucial for protecting sensitive data and complying with UK data protection regulations like  GDPR .
• Virtual communication tools:  Video conferencing platforms like Zoom or Microsoft Teams facilitate remote collaboration.

Setting up a recruitment agency’s team and infrastructure is a significant undertaking, requiring substantial resources. For those considering an easier route, a franchise model like Recruiter Startup provides the essential components and support under Additional Resources , allowing you to focus on growing your business. Check out what others are saying about us .

Stage #6: Defining Financial Projections and Funding

To create a comprehensive recruitment agency business plan, it’s essential to determine funding sources and estimate projected returns on investment.

2. Finding Funding Sources

• Business loans: Banks, credit unions, and online lenders offer loans, but they require collateral and solid financial projections. The British Business Bank can help you find suitable financing options in the UK.
• Angel investors: These are wealthy individuals who invest in exchange for equity and high potential returns. The UK Angel Investment Network can help connect you with investors.
• Crowdfunding: This involves raising small amounts from multiple contributors. Platforms like Seedrs and Crowd cube are popular but require dedicated effort.
• Franchising: Pay an upfront fee to access a proven model and brand, e.g., Additional Resources’ Recruiter Startup . This option provides more support but less control over your agency.

Note: With Recruiter Startup, your upfront fee is only £750 + VAT per month, a far lower expense than starting your own recruitment agency.

1. Creating Financial Projections

Consider the following factors in doing so:

• Revenue: Estimate the number of placements you can make annually and the average fee per placement. In the UK, the average fee for permanent placements is around 15–20% of the candidate’s annual salary. Don’t forget to account for seasonal fluctuations in the job market.
• Expenses: Calculate rent, payroll, marketing, and other business expenses. In London, for example, office rental costs can range from £50 to £150 per square foot per year. 

Note: When you set up as a franchise recruiter under the Recruiter Startup model, your expenses will be slashed as you won’t need to spend on office space or staff.

• Profit: Determine your projected profits by subtracting expenses from revenue. This demonstrates the potential ROI for investors.

To secure funding, present a well-developed business plan with solid financials and explain how the investment will drive growth and profits.

Stage #7: Outlining Risk Assessment and Mitigation Strategies

Considering potential risks and creating strategies to address them is crucial for the success of your recruitment agency.

Here are some key areas to focus on:

1. Identifying and Addressing Risks

When designing your recruitment agency business plan, anticipate challenges and develop solutions.

Common risks include the following:

• Economic downturns : A weak economy slashes hiring rates. Maintain cash reserves and diversify your client base to mitigate this risk.
• New competitors:  Stay competitive by focusing on niche markets and building strong client relationships. There are over 27,700 recruitment agencies in the UK, making it essential to stand out.
• Key staff departures : Retain top talent by implementing training programs and offering incentives. Take note that ensuring high employee turnover can be costly and disruptive.

2. Meeting Legal Requirements

Compliance with legal regulations is vital for your agency’s reputation and success.

To achieve this, ensure you do the following:

• Adhere to data protection laws : Obtain consent for storing and using client/candidate information. In the UK, compliance with the GDPR is mandatory.
• Follow employment regulations:  Verify candidates’ right to work and provide fair pay/contracts. UK agencies must comply with the  Conduct of Employment Agencies and Employment Businesses Regulations 2003.
• Register as an employment agency:  Requirements vary across countries and states. Registration with the  Employment Agency Standards (EAS)   Inspectorate is necessary for the UK.

Failing to comply with legal obligations can result in fines, reputational damage, or even forced closure. Hence, prioritise compliance from the outset.

Saving Time and Cost With the Franchise Recruitment Model

Starting a recruitment agency from scratch can be time-consuming and expensive, especially when considering investing in a robust recruitment agency business plan. However, a franchise recruitment model can save time and money, allowing your business to become operational more quickly and efficiently.

The key benefits of choosing a franchise recruitment model include the following:

• Accelerated business setup : Franchising allows you to leverage an established brand and proven business model, significantly reducing the time and effort required to start your agency.
• Existing customer base:  As a franchise recruiter working from home, you can tap into the franchise agency’s existing customer base, reducing the need to invest heavily in marketing and brand awareness campaigns.
• The lion’s share of all placement fees : When you register as a franchise recruiter with an agency like Recruiter Startup, you get to keep 80%–90% of all your placements.
• Comprehensive business plan:  Franchise recruitment eliminates spending months perfecting your business plan, as the franchise agency provides a tried-and-true plan to follow.
• Online presence and marketing materials:  Franchise recruiters can bypass the hassle of building a website and online presence by using the franchise agency’s established website and marketing materials.
• Cost savings:  The franchise recruitment model often includes software requirements and supplies provided or subsidised by the franchise agency, leading to significant cost savings.
• Expert guidance and training:  Franchise recruiters can benefit from valuable insights and training from an experienced franchise agency that’ll guide them through setting up and operating their recruitment desk.

Choosing a franchise recruitment model allows aspiring agency owners to start placing candidates and generating revenue much sooner. This approach saves time compared to spending months designing a recruitment agency business plan. The franchise model is an attractive option for those looking to enter the recruitment industry hassle-free.  Contact us  now to get started!

Recruitment Agency Business Plan - Frequently Asked Questions

Yes, starting a recruitment agency can be a good idea if you possess strong industry knowledge, networks, and the ability to match job seekers with suitable employers. The recruitment industry can be lucrative and rewarding. However, it’s essential to be aware of the challenges, such as competition, changing market conditions, and the need for adaptation to new technology. 

Yes, starting a recruitment agency can be a good idea if you possess strong industry knowledge, networks, and the ability to match job seekers with suitable employers. The recruitment industry can be lucrative and rewarding. However, it’s essential to be aware of the challenges, such as competition, changing market conditions, and the need for adaptation to new technology.

Some of the best industries to start a recruitment agency are:

• Medical and Healthcare
• Information Technology (IT)
• Renewable Energy
• Construction and Engineering

Yes, the recruitment industry can be challenging due to several factors, including the following:

• High competition: With over 27,700 recruitment agencies in the UK alone, competition is quite steep.
• Changing technology: Keeping up with new technologies like AI and automation may require adaptation and learning.
• Building relationships: Developing solid relationships with clients and candidates is crucial but time-consuming.

Based on data from several sources, the UK recruitment industry is experiencing growth but at a slower pace . However, over 50% of recruitment agency experts forecast a 1%–25% Based on data from several sources, the UK recruitment industry is experiencing growth but at a slower pace . However, over 50% of recruitment agency experts forecast a 1%–25%

Wrapping It Up

So, there you have it — a complete guide to a recruitment agency business plan . As you can see, it’s no easy feat and requires a significant time and financial investment to get off the ground. The business plan alone can take months of work.  For those determined to forge ahead alone be sure to utilise our Recruitment Agency Business Plan workbook alongside this guide to help walk you step by step, and organise your thoughts and ensure no critical element is overlooked.

Why go through all that hassle when there’s a more straightforward solution?

Franchise models like Recruiter Startup offer an affordable turnkey solution to get your recruitment agency up and running in no time. We provide the systems, training, and support so you can focus on what matters — finding great candidates and clients.

Start building your dream recruitment agency today with a working business model. The opportunities are right here waiting for you, so take that first step now . You’ll be glad you did!

I'd like to explore the franchise model, what are the next steps?

Let's talk about starting your recruitment desk.

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Recruitment Business Plan

Ready to take control of your future by starting your own recruitment agency.

The closer you get to putting your plan into action, the sooner you will need to write a professional business plan that will help you:

• Understand your competition
• Define your unique selling proposition (USP)
• Outline your business milestones
• Investigate funding options
• Get your business off the ground

SSG is currently supporting 200 UK-based recruitment startups launch and grow into successful agencies, so we’ve put together a helpful and easy-to-follow guide to writing a successful business plan for a recruitment startup.

What should my business plan contain?

• A clear and concise executive summary
• Details about your new recruitment business
• An analysis of the market and your competitors
• Your plan for sales and marketing
• How you will manage the business
• A detailed breakdown of your operations plan
• Your financial projections and requirements

Want to know more about SSG?

SSG gives rocket fuel to entrepreneurial recruiters. By taking the financial risk and administrative hassle out of launching your own recruitment start-up, SSG lets you concentrate on what you love doing: making great placements.

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#10 To successfully implement a marketing strategy, your employee experience must be part of the plan Future Fit Marketing podcast

Deep Dive with Bev Bury Director of Operations, Marketing and Recruitment for The University of Adelaide You have the foundations of a good marketing plan, aligned to the business strategy, but your ability to deliver on outcomes to that plan, relies on a certain team dynamic and inertia to thrive.  So how do you go about building a strong culture in your marketing team and aligning that to your marketing plan to deliver on business outcomes? I interview Bev Bury, Director of Marketing Operations for the University of Adelaide. She has been part of, and led, many diverse teams and firmly believes the most successful marketing teams have a strong culture at their core. To find out more, visit futurefitmarketing.com.au/podcasts

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